Fairfield Company\'s raw materials inventory transactions for the most recent mo
ID: 2607747 • Letter: F
Question
Fairfield Company's raw materials inventory transactions for the most recent month are summarized here Beginning raw materials Purchases of raw materials Raw materials issued $ 10,000 107,000 Materials requisition 1445 Materials requisition 1446 Materials requisition 1447 42,500 For Job 101 33.000 For Job 102 10,500 Used on multiple jobs 1. & 2. Prepare the journal entries for materials. (lf no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list 1 Record the purchase on account of raw materials 2 Record the issuance of raw materials to production Credit Note : journal entry has been entered Record entry Clear entry View general journalExplanation / Answer
Solution : Journal Entries
1.Purchase of raw material
Raw material inventory A/c ---- Dr 107,000
To Accounts payable/cash /Bank A/c 107,000 ( being materials purchased on account )
2. Record issuance of raw materials to Production : ( assuming there are multiple processes and from work in process it would move to finished goods)
Work in Process - Job 101 ....Dr 42,500
Work in Process - Job 102.... Dr 33,000
Work in Process - Multiple Jobs ... Dr 10,500
To Raw Material inventory A/c 86,000 ( being raw materials allocated to various jobs )
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