Prepare the necessary journal entries from the following information for Brady Company, which uses a perpetual inventory
Question:
Prepare the necessary journal entries from the following information for Brady Company, which uses a perpetual inventory system.
a. Purchased raw material on account, $56,700.
b. Requisitioned raw material for production as follows: direct material-80 percent of purchases; indirect material-15 percent 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. Goods costing $97,600 were completed during the period.
g. Goods costing $51,320 were sold on account for $77,600.
(3 points each)
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M