Problem
Sandberg Pottery and Ceramics produces unique decorative ceramic figurines for home use. Sandberg recently purchased a large amount of clay for use in its production process.
Consider the following transactions for Sandberg Pottery and Ceramics.
Nov 4 Sandberg purchased 1, 900 pounds of clay for $1.60 per pound on account. The clay is to be used to produce 135 clay horses for a customer.
Nov 6 The mixing department filed a materials requisition requesting that 800 pounds of clay be released for production. The materials will be used to produce medium birdbaths for use in gardens. A customer has ordered 35 birdbaths for immediate delivery. The clay, which cost $1.60 per pound, was delivered to the mixing department on November 6.
Prepare the journal entries to record the purchase of clay on November 4 and the receipt of clay to the mixing department on November 6. Use Smart Entry when selection lists are not available.