QS 15-4 Raw materials journal entries LO P1 During the current month, a company that uses job order costing purchases $90,000 in raw materials for cash. It then uses $17,000 of raw materials indirectly as factory supplies and uses $66,100 of raw materials as direct materials. Prepare journal entries to record these three transactions

Question

Laylah Boone

Business

1 December, 17:34

QS 15-4 Raw materials journal entries LO P1 During the current month, a company that uses job order costing purchases $90,000 in raw materials for cash. It then uses $17,000 of raw materials indirectly as factory supplies and uses $66,100 of raw materials as direct materials. Prepare journal entries to record these three transactions

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Rich · Answer 1

The journal entries are shown below:

Explanation:

The journal entries are as follows

Raw materials inventory $90,000

To Cash $90,000

(Being the raw material is purchase for cash is recorded)

Factory overhead $17,000

Raw materials inventory $17,000

(Being the factory supplies is recorded)

Work in process inventory $66,100

Raw materials inventory $66,100

(Being the work in process is recorded)

Only these three entries are to be recorded)