Question

n January, Marigold company requisitions raw materials for production as follows: Job 1 $920, Job 2 $1,600, Job 3 $720, and general factory use (indirect materials) $700. Prepare a summary journal entry to record raw materials used. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

Answer and Explanation:

The summarized journal entry for using the raw material is shown below:

Work in process inventory $3,240 ($920 + $1,600 + $720)   Dr

Manufacturing overhead 700 Dr

             To Raw material inventory $3,940

(Being the raw material used is recorded)

For recording this we debited the work in process and factory overhead as it increased the assets and expenses and credited the raw material inventory as it decreased the assets