Prepare the necessary journal entries from the following information for Bonnie’
ID: 2442348 • Letter: P
Question
Prepare the necessary journal entries from the following information for Bonnie’s Corp which uses a perpetual inventory system.a. Purchased raw material on account, $56,700.
b. Requisitioned raw materials for production as follows: direct material 80% of
purchases; indirect material 15% of purchases:
c. Direct Labor wages of $33,100 are accrued as are indirect labor wages of $12,500.
d. Overhead incurred and paid for is $66,900
e. Overhead is applied to production based on 110 percent of direct labor cost
f. Additional overhead of $30,000 is applied to production for various jobs
g. Goods costing $97,600 were completed during the period
h. Goods costing $51,320 were sold on account for $77,600
i. Dispose of overapplied or underapplied overhead (assuming it is immaterial)
Explanation / Answer
a) Raw Materials Inv 56700 Account Payable 56700 b) WIP Inv 45360 Raw Mater Inv-direct 45360 WIP Inv 8505 Raw Mater Inv -indirect 8505 c) WIP INV 33,100 Wages Payab 33,100 WIP INV 12500 Wages Patable 12500 d) MOH 66,900 Cash 66900 e) Wip Inv(33100*1.1) 36410 MOH 36410 WIP INV 30,000 MOH 30,000 g) Finished Goods Inv 97600 WIP INV 97600 h) Account Receiv 77600 Sales Revenue 77600 Cost of Goods Sold 51320 Finished Goods Inv 51320 i) MOH 490 Cost of Goods Sold 490 To assign(dispose) overapplied overhead toCGS(66900-36410-30000)=490 Redused CGS