Prepare the Necessary Journal Entries from the Following Information for Blalock

question 17

Essay

Prepare the necessary journal entries from the following information for Blalock Company.
a. Purchased materials on account, $56,700.
b. Requisitioned materials for production as follows: direct materials - 80 percent of purchases, indirect materials - 15 percent of purchases.
c. Direct labor for production is $33,100, indirect labor is $12,500.
d. Overhead incurred (not including indirect materials or indirect labor): $52,900.
e. Overhead is applied to production based on direct labor cost at the rate of 220 percent.
f. Goods costing $97,600 were completed during the period.
g. Goods costing $51,320 were sold on account for $77,600.
h. Close the overhead control account to Cost of Goods Sold.

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Definitions:

Opportunities

Circumstances that make it possible to do something, often leading to new ventures or investments in economics.

Scarcity

The limits placed on the amounts and types of goods and services available for consumption as the result of there being only limited economic resources from which to produce output; the fundamental economic constraint that creates opportunity costs and that necessitates the use of marginal analysis (cost-benefit analysis) to make optimal choices.

Opportunity Costs

Missing out on potential gains from various alternatives once a particular option is picked.

Economics Quiz

A set of questions designed to test knowledge and understanding of economic principles and theories.