Response to the following problem:
Bullock Furniture Company manufactures furniture. Bullock uses a job order cost system. Balances on June 1 from the materials ledger are as follows:
Fabric $25,000
Polyester filling 7,500
Lumber 56,000
Glue 2,400
The materials purchased during June are summarized from the receiving reports as follows:
Fabric $126,000
Polyester filling 175,000
Lumber 345,000
Glue 12,000
Materials were requisitioned to individual jobs as follows:
|
|
Fabric
|
Polyester
Filling
|
Lumber
|
Glue
|
Total
|
|
Job 101
|
$ 47,500
|
$ 60,000
|
$160,000
|
|
$267,500
|
|
Job 102
|
36,500
|
54,000
|
140,000
|
|
230,500
|
|
Job 103
|
33,500
|
44,000
|
78,000
|
|
155,500
|
|
Factory overhead-indirect
|
|
|
|
|
|
|
Materials
|
|
|
|
$13,000
|
13,000
|
|
Total
|
$117,500
|
$158,000
|
$378,000
|
$13.000
|
$666.500
|
The glue is not a significant cost, so it is treated as indirect materials (factory overhead).
a. Journalize the entry to record the purchase of materials in June.
b. Journalize the entry to record the requisition of materials in June.
c. Determine the June 30 balances that would be shown in the materials ledger accounts.