Problem - Bullock Furniture Company manufactures furniture. Bullock uses a job order cost system. Balances on June 1 from the materials ledger are as follows:
Fabric 25,000
Polyester Filling 7,500
Lumber 56,000
Glue 2,400
The materials purchased during June are summarized from the receiving reports as follows:
Fabric 126,000
Polyester Filling 175,000
Lumber 345,000
Glue 12,000
Materials were requisitioned to individual jobs as follows:
Fabric Polyester Filling Lumber Glue Total
Job 101 47,500 60,000 160,000 267,500
Job 102 36,500 54,000 140,000 230,500
Job 103 33,500 44,000 78,000 155,500
Factory overhead-indirect materials 13,000
Total 117,500 158,000 378,000 13,000 666,500
The glue is not a significant cost, so it is treated as indirect materials (factory overhead).
a. Journalize the entry to record the purchase of materials in June.
b. Journalize the entry to record the requisition of materials in June.