Straight Packs manufactures backpacks. Its plant records include the following materials-related dа ta:

Raw Materials Inventory, beginning balance

$31,000

Purchases of canvas, on account

66,000

Purchases of sewing machine lubricating oil, on account

1,100

Material requisitions:

Canvas

60,000

Sewing machine lubricating oil

450

Journalize the entries to record the transactions, post to the Raw Materials Inventory account, and determine the ending balance in Raw Materials Inventory.

Journalize the entries to record the transactions.

Begin by recording the journal entry for the purchases of materials. (Record debits first, then credits. Exclude explanations from any journal entries.)

Question

Marilyn

Business

2 April, 06:16

Straight Packs manufactures backpacks. Its plant records include the following materials-related dа ta:

Raw Materials Inventory, beginning balance

$31,000

Purchases of canvas, on account

66,000

Purchases of sewing machine lubricating oil, on account

1,100

Material requisitions:

Canvas

60,000

Sewing machine lubricating oil

450

Journalize the entries to record the transactions, post to the Raw Materials Inventory account, and determine the ending balance in Raw Materials Inventory.

Journalize the entries to record the transactions.

Begin by recording the journal entry for the purchases of materials. (Record debits first, then credits. Exclude explanations from any journal entries.)

+4

Answers (1)

Know the Answer?

Sam Grant · Answer 1

Journalize the entries to record the transactions.

Dr. Cr.

Raw Material Inventory $67,100

(66,000 + 1,100)

Account Payable $67,100

Work in Process $60,450

Raw Material Inventory $60,450

Raw Material Inventory Account

Dr. Cr. Balance

Opening Balance $31,000

Purchases (Canvas+oil) $67,100 $98,100

Work in Process $60,450 $37,650

Ending balance in Raw Materials Inventory is $37,650

Explanation:

Raw Material Inventory account is an asset account and Purchases are added in it. Material requisitions are made to transfer raw material from warehouse to other departments for processing so it is transferred to work in process account from Raw material Inventory account.