Prepare the necessary journal entries from the following Information for Welsh Company, which uses a perpetual Inventory system. Purchased raw material on account, P56,700. b. Requisitioned raw materlals for production as follows: a. Direct materials: 80 percent of purchases; Indirect materials: 15 percent of purchases. Direct labor wages of P33,100 are accrued as are indirect labor wages of P12,500. d. Overhead Incurred and paid for is P66,900. Overhead Is applled to production based on 110 percent of direct labor cost. f. C. e. Goods costing P97,600 were completed during the period. What is the journal ehtry for transaction (g)? Cost of goods sold Finished goods inventory 8a. 51,320 51,320 Finished goods inventory Work in process inventory, b. 51,320 51,320 C Cost of goods sold Work in process inventory 51,320 51,320 d. Cost of goods sold 51,320 Sales 51,320
Prepare the necessary journal entries from the following Information for Welsh Company, which uses a perpetual Inventory system. Purchased raw material on account, P56,700. b. Requisitioned raw materlals for production as follows: a. Direct materials: 80 percent of purchases; Indirect materials: 15 percent of purchases. Direct labor wages of P33,100 are accrued as are indirect labor wages of P12,500. d. Overhead Incurred and paid for is P66,900. Overhead Is applled to production based on 110 percent of direct labor cost. f. C. e. Goods costing P97,600 were completed during the period. What is the journal ehtry for transaction (g)? Cost of goods sold Finished goods inventory 8a. 51,320 51,320 Finished goods inventory Work in process inventory, b. 51,320 51,320 C Cost of goods sold Work in process inventory 51,320 51,320 d. Cost of goods sold 51,320 Sales 51,320
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 53
2P
Prepare the necessary journal entries from the following Information for Welsh Company, which uses a perpetual
Inventory system.
Purchased raw materlal on account, PS6,70.
b. Requisitioned raw materlals for production as follows:
a.
Direct materials: 80 percent of purchases;
Indirect materials: 15 percent of purchases.
Direct labor wages of P33,100 are accrued as are indirect labor wages of P12,500.
Overhead Incurred and paid for Is P66,900.
Overhead Is applied to production based on 110 percent of direct labor cost.
d.
e.
f.
Goods costing P97,600 were completed during the period.
What is the journal entry for transaction (g)?
Cost of goods sold
Finished goods inventory
a.
51,320
51,320
b. Finished goods inventory
Work in process inventory,
51,320
51,320
Cost of goods sold
Work in process Inventory
51,320
51,320
d. Cost of goods sold
51,320
Sales
51.320
Transcribed Image Text:Prepare the necessary journal entrles from the following Information for Welsh Company, which uses a perpetual
Inventory system.
Purchased raw material on account, P56,700.
b. Requisitioned raw materials for production as follows:
a.
Direct materials: 80 percent of purchases:
Indirect materials: 15 percent of purchases.
Direct labor wages of P33,100 are accrued as are indirect labor wages of P12,500.
d. Overhead incurred and pald for is P66,900.
Overhead is applied to production based on 110 percent of direct labor cost.
Goods costing P97,600 were completed during the period.
Goods costing P51,320 were sold on account.
C.
e.
f.
g.
What is the journal entry for transaction (c)?
45,600
a.
Work In process
Wages payable
45,600
b.
45,600
Wages expense
Wages payable
45,600
Work in process inventory
Wages expense
Wages payable
33,100
12,500
45,600
Work in process inventory
Manufacturing overhead
Wages payable
33.100
12,500
d.
45-600
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