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suter [353]
3 years ago
13

Issuance of Materials On May 7, Bergan Company purchased on account 10,000 units of raw materials at $8 per unit. During May, ra

w materials were requisitioned for production as follows: 7,500 units for Job 200 at $8 per unit and 1,480 units for Job 305 at $5 per unit. Journalize the entry on May 7 to record the purchase.
Business
1 answer:
Mashcka [7]3 years ago
3 0

Answer:

Given that,

Units purchased = 10,000

Per unit price = $8

The journal entry is as follows:

On May 7,

Materials A/c             Dr.  $80,000    

To Accounts payable                      $80,000

(To record the purchase)

Workings:

Materials = Units purchased by company × Raw material per unit price

= 10,000 × $8

= $80,000

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