Answer:
1. Dr Raw materials inventory $175,000
Cr Cash $175,000
2. Dr Goods in process inventory $138,000
Cr Raw materials inventory $138,000
3. Dr Factory overhead $7,000
Cr Raw materials inventory $7,000
Explanation:
Preparation of journal entries transactions for the month of May.
1. Dr Raw materials inventory $175,000
Cr Cash $175,000
2. Dr Goods in process inventory $138,000
Cr Raw materials inventory $138,000
($26,000+$175,000-$7,000-$56,000)
3. Dr Factory overhead $7,000
Cr Raw materials inventory $7,000
