Reference no: EM133234901
Recording materials transactions Broadwell Manufacturing Co. maintains the following accounts in the general ledger: Materials, Work in Process, Factory Overhead, and Accounts Payable. On July 1, the materials account had a debit balance of $10,000. Following is a summary of materials transactions for the month of July:
- Materials purchased, $35,750.
- Direct materials requisitioned to production, $29,250.
- Direct materials returned to storeroom, $2,200.
- Indirect materials requisitioned to production, $3,975.
- Indirect materials returned to storeroom, $585.
1. Prepare journal entries to record the materials transactions.
2. Post the journal entries to ledger accounts (in T-account form).
3. What is the balance of the materials inventory account at the end of the month?