Prepare the necessary journal entries from the following information for Bonnieâ€™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)
On April 30, 2010, Alvira Co. had 21,600 units in process that were 85 percent complete as to material, 60 percent complete as to direct labor, and 45 percent complete as to overhead. During May, 561,000 units were started. The 13,700 units in ending inventory were 75 percent complete as to material, 25 percent complete as to direct labor, and 10 percent complete as to overhead.
a. Calculate the physical units to account for in May.
b. How many units were started and completed during May?
c. Determine Mayâ€™s EUP for each category using the weighted average method.
d. Determine Mayâ€™s EUP for each category using the FIFO method.
e. Reconcile your answers to parts (c) and (d).