Gorman Furniture Company manufactures furniture. Gorman uses a job order cost sy

Question

Gorman Furniture Company manufactures furniture. Gorman uses a job order cost system. Balances on April 1 from the materials ledger are as follows:
Fabric $40,000
Polyester filling 12,000
Lumber 89,500
Glue 3,900

The materials purchased during April are summarized from the receiving reports as follows:

Fabric $201,600
Polyester filling 280,00
Lumber 550,000
Glue 19,500


Materials were requisitioned to individual jobs as follows:
FABRIC
Job 101: $76,000
Job 102: 58,400
Job 103: 54,000
TOTAL 188,400

POLYESTER
Job 101: $ 96,000
Job 102: 86,400
Job 103: 70,500
TOTAL 252,900

LUMBER
Job 101: $256,000
Job 102: 224,000
Job 103: 125,000
TOTAL 605,000

GLUE
Factory overhead 20,800
(indirect materials)
TOTAL 20,800

TOTAL:
Job 101: (fabric, polyester, lumber) $428,000
Job 102: (fabric, polyester, lumber) 368,800
Job 103: (fabric, polyester, lumber) 249,500
Factory overhead: 20,800
(indirect materials)
Total 1,067,100
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 April.


b. Journalize the entry to record the requisition of materials in April. If an amount box does not require an entry, leave it blank or enter zero ("0").

Work in process (debit)
Factory overhead (debit)
Materials (credit)



c. Determine the April 30 balances that would be shown in the materials ledger accounts.

Balance, April 30

Fabric $

Filling $

Lumber $

Glue $

Explanation / Answer

a. materials-1051100; accounts payable-1051100 b. work in progress-debit-1046300 factory overhead-debit-20800 materials-1067100 c. fabric-53200 filling-39100 lumber-34500 glue-2600

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