Tiago\'s Electronics uses a standard costing system. Tiagos Electronics purchase

Question

Tiago's Electronics uses a standard costing system. Tiagos Electronics purchased 28,000 feet of direct material at the cost of $5.00/foot. The standard cost is $5.30/foot, and it takes 12 feet of direct material to make one unit of product. This month, 3,000 units were produced, and all 28,000 feet of material were used in production.

-what is the journal entry to record the purchase of direct materials on account?

-What is the journal entry to record the use of direct materials in production?

(Please show all work for full credit)

Explanation / Answer

Raw material A/c Dr

To Accounts Payable A/c

(Entry for purchase of raw material on account 28000*5)

Work in Process A/c Dr

To Raw material A/c

(Entry for raw material issued to production department)

Sr. No. Particulars Debit Credit 1

Raw material A/c Dr

To Accounts Payable A/c

(Entry for purchase of raw material on account 28000*5)

140000 140000 2

Work in Process A/c Dr

To Raw material A/c

(Entry for raw material issued to production department)

140000 140000

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