Paper Packaging Co. buys wood pulp from suppliers, which it then processes into various products. This month, Paper Packaging produced 6,000 batches of paper products. Each batch normally requires 3 lbs. of wood pulp. However, several machine malfunctions caused spoilage of some of the pulp, and the average direct materials usage was actually 3.5 lbs. /batch. The pulp was originally purchased at a special discount price of $0. 20/lb. Paper Products had planned to purchase all direct materials this year at $0.30/lb.
What is the journal entry to record the requisition of direct materials into production?

Question

Paper Packaging Co. buys wood pulp from suppliers, which it then processes into various products. This month, Paper Packaging produced 6,000 batches of paper products. Each batch normally requires 3 lbs. of wood pulp. However, several machine malfunctions caused spoilage of some of the pulp, and the average direct materials usage was actually 3.5 lbs. /batch. The pulp was originally purchased at a special discount price of $0. 20/lb. Paper Products had planned to purchase all direct materials this year at $0.30/lb. 
What is the journal entry to record the requisition of direct materials into production?

Quizplus · Accepted Answer

The Answer of Paper Packaging Co. buys wood pulp from suppliers, which it then processes into various products. This month, Paper Packaging produced 6,000 batches of paper products. Each batch normally requires 3 lbs. of wood pulp. However, several machine malfunctions caused spoilage of some of the pulp, and the average direct materials usage was actually 3.5 lbs. /batch. The pulp was originally purchased at a special discount price of $0. 20/lb. Paper Products had planned to purchase all direct materials this year at $0.30/lb. 
What is the journal entry to record the requisition of direct materials into production?