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4 April, 16:51

During the current month, a company that uses job order costing purchases $92,000 in raw materials for cash. It then uses $24,000 of raw materials indirectly as factory supplies and uses $58,100 of raw materials as direct materials. Prepare journal entries to record these three transactions.

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  1. 4 April, 17:50
    raw materials inventory 92,000 debit

    cash 92,000 credit

    WIP inventory 58,100 debit

    factory overehad 24,000 debit

    raw materials inventory 82,100 credit


    First, we debit the raw materials as we acquire an asset.

    When we post the requisition from the dp'roduction department we credited.

    The direct materials will be capitalized through finished goods once production is completed.

    the indirect materials to later compare with the applied overhead and determinate under or overapplication.
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