Question

During the current month, a company that uses job order costing purchases $52,000 in raw materials for cash. It then uses $22,000 of raw materials indirectly as factory supplies and uses $20,100 of raw materials as direct materials. Prepare journal entries to record these three transactions

Answer 1

Account Title Debit Credit

Raw materials inventory $52,000

Cash $52,000

Account Title Debit Credit

Factory Supplies $22,000

Raw materials $22,000

Account Title Debit Credit

Work in Process inventory $20,100

Raw materials $20,100