On May 7, Keenan Company purchased on account 620 units of raw materials at $21 per unit. During May, raw materials were requisitioned for production as follows: 211 units for Job 200 at $19 per unit and 273 units for Job 305 at $21 per unit.
Required:
Journalize the entry on May 7 to record the purchase and on May 31 to record the requisition from the materials storeroom.

Dr Material Inventory $13,020

Cr               Trade Payables $13,020

Dr Work In Progress $9,742

Cr Material Inventory       $9,742

Explanation:

On 7th May the double entry would be to record the inventory purchases on credit which would increase the inventory by $13,020 (620*21) as under:

Dr Material Inventory $13,020

Cr               Trade Payables $13,020

The material sent to production or manufacturing team would be recorded as increase in the work in progress by the value of the material issued which is $9,742 (211*$19 + 273*$21).

Dr Work In Progress $9,742

Cr Material Inventory       $9,742

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o

answer/// equals both average variable cost and average total cost at their respective minimums;