Mystic Manufacturing Company maintains the following accounts in the general ledger: Materials, Work in Process, Factory Overhead, and Accounts Payable. On June 1, the materials account had a debit balance of $5,000. Following is a summary of materials transactions for the month of June:1. Materials purchased $23,750.2. Direct materials requisitioned to production, $19,250.3. Direct materials returned to storeroom, $1,200.4. Indirect materials requisitioned to production, $2,975.5. Indirect materials returned to storeroom, $385.a. Prepare journal entries to record the materials transactions.b. Post the journal entries to ledger accounts (in T-account form).c. What is the balance of the materials inventory account at the end of the month?
Mystic Manufacturing Company maintains the following accounts in the general ledger: Materials, Work in Process, Factory Overhead, and Accounts Payable. On June 1, the materials account had a debit balance of $5,000. Following is a summary of materials transactions for the month of June:
1. Materials purchased $23,750.
2. Direct materials requisitioned to production, $19,250.
3. Direct materials returned to storeroom, $1,200.
4. Indirect materials requisitioned to production, $2,975.
5. Indirect materials returned to storeroom, $385.
a. Prepare journal entries to record the materials transactions.
b. Post the journal entries to ledger accounts (in T-account form).
c. What is the balance of the materials inventory account at the end of the month?
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 5 images
