Question

QS 15-4 Raw materials journal entries LO P1 During the current month, a company that uses job order costing purchases $90,000 in raw materials for cash. It then uses $17,000 of raw materials indirectly as factory supplies and uses $66,100 of raw materials as direct materials. Prepare journal entries to record these three transactions

Answer 1

Answer:

The journal entries are shown below:

Explanation:

The journal entries are as follows

Raw materials inventory $90,000  

      To  Cash  $90,000

(Being the raw material is purchase for cash is recorded)

Factory overhead $17,000  

         Raw materials inventory  $17,000

(Being the factory supplies is recorded)

Work in process inventory $66,100  

         Raw materials inventory $66,100

(Being the work in process is recorded)

Only these three entries are to be recorded)