During June, Briganti Corporation purchased $81,000 of raw materials on credit to add to its raw materials inventory. A total of $66,000 of raw materials was requisitioned from the storeroom for use in production. These requisitioned raw materials included $6,000 of indirect materials. Required:

Prepare journal entries to record the purchase of materials and their use in production.

(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Question

Royce

Business

1 October, 15:35

During June, Briganti Corporation purchased $81,000 of raw materials on credit to add to its raw materials inventory. A total of $66,000 of raw materials was requisitioned from the storeroom for use in production. These requisitioned raw materials included $6,000 of indirect materials. Required:

Prepare journal entries to record the purchase of materials and their use in production.

(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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Answers (1)

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Clinton Bishop · Answer 1

The journal entries are shown below:

1. Raw material inventory A/c Dr $81,000

To Accounts payable A/c $81,000

(Being the raw material is purchased on account)

2. Work in process inventory A/c Dr $66,000

Manufacturing overheads A/c Dr $6,000

To Raw material inventory A/c Dr $72,000

(Being the use of the material is recorded)