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Prepare the following journal entries a. Purchase materials, including wood, aluminum, plastic, packaging and indirect materials on account 125,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 18EA: Prepare the journal entry to record the transfer of 3,000 units from the packaging department to...

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Question

Prepare the following journal entries

a. Purchase materials, including wood, aluminum, plastic, packaging and indirect materials on account 125,000

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

Expert Solution

Step 1

For purchase of materials the following entry shall be recorded

Purchase A/c Dr xxxx

To Cash/ bank/Creditor A/c xxxx

( Being purchased of raw material )

Generally purchase includes all kind of materials and other relevant materials which are purchased shall be recorded combiningly or seperately. If there is no proper segregation of prices for individual items all are recorded at one head only.

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