Question

In January, Dieker Company requisitions raw materials for production as follows: Job 1 $900, Job 2 $1,200, Job 3 $700, and general factory use $600. Prepare a summary journal entry to record raw materials used. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 31 enter an account title for the journal entry on January 31

Answer 1

Answer:

Dr Work in process inventory 2,800  

Dr Factory overhead 600  

    Cr Raw material inventory 3,400

Explanation:

Work in process = $900 + $1,200 + $700 = $2,800

Factory overhead (supplies) is the same, $600

inventory decrease = WIP + supplies = $2,800 + $600 = $3,400