Gullett Corporation had $32,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additional $81,000 of raw materials. The journal entry to record the purchase of raw materials would include a:

Dr Raw materials$81, 000

Cr Accounts payable $81,000

Explanation:

Preparation of the journal entry to record the purchase of raw materials for Gullett Corporation

Since we were told that the Corporation already had the amount of $32,000 of raw materials on hand in which they later purchased an additional amount of $81,000 of the raw materials this means we are going to record the Journal entry by Debiting Raw materials with the amount of $81, 000 which is the additional amount of the raw materials purchased and toCredit Accounts payable with the same amount of $81,000.

Dr Raw materials$81, 000

Cr Accounts payable $81,000

(To record purchase of raw materials)

57,900 units

Explanation:

For computing the equivalent units for conversion costs , first we have to compute the transferred units which is shown below:

= Beginning work in process inventory units + additional units - ending work in process inventory units

= 3,400 units + 64,500 units - 25,000 units

= 42,900 units

Now the equivalent units for conversion costs equal to

=  Transferred units × percentage of completion + ending work in process inventory units × percentage of completion

= 42,900 units × 100% + 25,000 units ×60%

= 42,900 units + 15,000 units

= 57,900 units