Issuance of Materials On May 7, Bergan Company purchased on account 10,000 units of raw materials at $8 per unit. During May, raw materials were requisitioned for production as follows: 7,500 units for Job 200 at $8 per unit and 1,480 units for Job 305 at $5 per unit. Journalize the entry on May 7 to record the purchase.

Question

Nigel Duffy

Business

10 October, 03:08

Issuance of Materials On May 7, Bergan Company purchased on account 10,000 units of raw materials at $8 per unit. During May, raw materials were requisitioned for production as follows: 7,500 units for Job 200 at $8 per unit and 1,480 units for Job 305 at $5 per unit. Journalize the entry on May 7 to record the purchase.

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Answers (1)

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Jake Jones · Answer 1

Given that,

Units purchased = 10,000

Per unit price = $8

The journal entry is as follows:

On May 7,

Materials A/c Dr. $80,000

To Accounts payable $80,000

(To record the purchase)

Workings:

Materials = Units purchased by company * Raw material per unit price

= 10,000 * $8

= $80,000