In January, Harlan, Inc. production supervisor requisitioned raw materials for production as follows: Job 1 $700, Job 2 $900, Job 3 $400, and general factory use, $520. Prepare a summary journal entry to record raw materials used. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Question

June Wilson

Business

20 October, 01:33

In January, Harlan, Inc. production supervisor requisitioned raw materials for production as follows: Job 1 $700, Job 2 $900, Job 3 $400, and general factory use, $520. Prepare a summary journal entry to record raw materials used. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

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Red Velvet · Answer 1

Work in progress inventory A/c Dr $2,000

Manufacturing overhead A/c Dr $520

To Raw material inventory A/c $2,520

(Being the raw material used is recorded)

Explanation:

The journal entry is shown below:

Work in progress inventory A/c Dr $2,000

Manufacturing overhead A/c Dr $520

To Raw material inventory A/c $2,520

(Being the raw material used is recorded)

The computations are shown below:

For Work in progress inventory

= Job 1 + Job 2 + Job 3

= $700 + $900 + $400

= $2,000

Raw material inventory

= Work in progress inventory + manufacturing overhead

= $2,000 + $520

= $2,520