Prepare the Necessary Journal Entries from the Following Information for Parrish

question 42

Essay

Prepare the necessary journal entries from the following information for Parrish Company,which uses a perpetual inventory system.
a. Purchased raw material on account $\$ 61,200 .$
b.Requisitioned raw material for prochuction as follows: direct material-75 percent of purchases; indirect material-20 percent of purchases.
c. Direct labor wages of $\$ 35,500$ are accrued as are indirect labor wages of $\$ 14,100$ .
d.Overhead incurred and paid for is $\$ 68,100$ .
e.Overhead is applied to production based on 125 percent of direct labor cost.
f. Goods costing $\$ 99,500$ were completed during the period.
g. Goods costing $\$ 53,400$ were sold on account for $\$ 81,200$ .

---

Definitions:

Widgets

Generic term often used to refer to a hypothetical product or any small device or gadget.

Place of Business

The specific location where a company conducts its operations or where its main offices are located.

Real Property

Real property refers to land and anything permanently attached to the land, such as buildings and structures.

Law of Sales

Governs the sale of goods, defining the rights, duties, and liabilities of buyers and sellers in transactions involving personal property.