Q2SE - Horngren'S Financial And Managerial Accounting

Question

Back Country manufactures backpacks. Its plant records include the following materials-related data

Journalize the entries to record the transactions, post to the Raw Materials Inventory account, and determine the ending balance in Raw Materials Inventory.

Step-by-Step Solution

Answer

Date	Particulars	Debit ($)	Credit ($)
1.	Raw material inventory	73,200
	Accounts payable		73,200
	(To record the purchase of raw material)
2.	Work in process inventory	59,000
	Manufacturing overhead	450
	Raw material inventory		59,450
	(To record material used)

The year ending balance in raw material inventory is $51,750

Raw material inventory purchased

The year ending balance in raw material inventory

Particulars	Amount ($)
Beginning balance	38,000
Account payable	73,200
Less: Work in process inventory	(59,000)
Less: Manufacturing overhead	(450)
Ending balance	51,750