Question

1. March 10: 500 units of raw materials were purchased on account at $4.00 per unit.
2. March 15: 250 units of raw materials were requisitioned at $4.50 per unit for production, Job 872.
3. March 25: 215 units of raw materials were requisitioned at $5.00 per unit for production, Job 879.

Required:
Record the journal entries for the above transactions: Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Answer:

Following  journal entries are recorded for the transactions: Refer to the Chart of Accounts for exact wording of account titles.

March 10:

Debt: Raw materials inventory = 2000  

Credit: Accounts Payable (500*4) = 2000

March 15:

Debt: Work in Process = 1125  

Credit: Raw materials inventory (250*4.50) = 1125

March 25:

Debt: Work in Process = 1075  

Credit: Raw materials inventory (215*5) = 1075