On August 4, Rothchild Company purchased on account 12,000 units of raw materials at $14 per unit. On August 24

On August 4, Rothchild Company purchased on account 12,000 units of raw materials at $14 per unit. On August 24, raw materials were requisitioned for production as follows: 5,000 units for Job 40 at $8 per unit and 6,200 units for Job 42 at $14 per unit. Journalize the entry on August 4 to record the purchase and on August 24 to record the requisition from the materials storeroom.

Answer:

Aug. 4 Materials 168,000  

  Accounts Payable  168,000 

  $168,000 = 12,000 × $14.   

     

 24 Work in Process* 126,800  

  Materials  126,800 

* Job 40 

 

$ 40,000 

 

= 5,000 × $8 

On February 8, Gross Company purchased on account 72,000 units of raw materials at $8 per unit. On February 19, raw materials were requisitioned for production as follows: 32,000 units for Job 60 at $7 per unit and 37,000 units for Job 61 at $8 per unit. Journalize the entry on February 8 to record the purchase and on February 19 to record the requisition from the materials storeroom.

Answer:


Feb. 8 Materials 576,000  
  Accounts Payable  576,000 
  $576,000 = 72,000 × $8.   
     
 19 Work in Process* 520,000  
  Materials  520,000 
* Job 60 

$224,000 

= 32,000 × $7 
Job 61   296,000 = 37,000 × $8 
Total $520,000