Materials ledger accounts


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               $18,400
Polyester filling     5,500
Lumber              41,200
Glue                    1,800

The materials purchased during June are summarized from the receiving reports as follows:

Fabric                   $90,200
Polyester filling      125,400
Lumber                 247,100
Glue                         8,600

Materials were requisitioned to individual jobs as follows:

Fabric Polyester Filling Lumber Glue Total

Job 101 $33,400 $42,100 $112,600 $188,100
Job 102 25,700 45,800 98,500 170,000
Job 103 23,700 31,100 54,800 109,600
Factory overhead-indirect materials $4,300 4,300
Total $82,800 $119,000 $265,900 $4,300 $472,000

The glue is not a significant cost, so it is treated as indirect materials (factory overhead).

Determine the June 30 balances that would be shown in the materials ledger accounts.

Balance, June 30

Fabric $
Polyester Filling $
Lumber $
Glue $

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Accounting Basics: Materials ledger accounts
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