Question

In January, Harlan, Inc. production supervisor requisitioned raw materials for production as follows: Job 1 $700, Job 2 $900, Job 3 $400, and general factory use, $520. Prepare a summary journal entry to record raw materials used. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answer 1

Answer:

Work in progress inventory A/c Dr $2,000

Manufacturing overhead A/c Dr $520

     To Raw material inventory A/c $2,520

(Being the raw material used is recorded)

Explanation:

The journal entry is shown below:

Work in progress inventory A/c Dr $2,000

Manufacturing overhead A/c Dr $520

     To Raw material inventory A/c $2,520

(Being the raw material used is recorded)

The computations are shown below:

For Work in progress inventory

= Job 1 + Job 2 + Job 3

= $700 + $900 + $400

= $2,000

Raw material inventory

=  Work in progress inventory + manufacturing overhead

= $2,000 + $520

= $2,520