hotwax makes surfboard wax in two sequential processes. This period, Hotwax purchased $62,000 in raw materials. Its mixing department requisitioned $50,000 of those materials for use in production. Prepare journal entries to record its purchase of raw materials and requisition of direct materials.

Question

Genevieve

Business

8 September, 06:05

hotwax makes surfboard wax in two sequential processes. This period, Hotwax purchased $62,000 in raw materials. Its mixing department requisitioned $50,000 of those materials for use in production. Prepare journal entries to record its purchase of raw materials and requisition of direct materials.

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Sophia · Answer 1

The answer is given below

Explanation:

From the question given, we resolve the issue as follows:

Hotwax purchased $62,000 in raw materials

The mixing department requisitioned $50,000 of those materials for use in production.

We prepare a journal entries to record its purchase of raw materials and requisition of direct materials.

Raw materials Inventory = $62,000

Cash = $62,000

Wip 50,000

Raw materials Inventory = $50,000