Question

Weber Company purchases $50,300 of raw materials on account, and it incurs $63,900 of factory labor costs. Supporting records show that (a) the Assembly Department used $27,100 raw materials and $40,100 of the factory labor, and (b) the Finishing Department used the remainder. Manufacturing overhead is assigned to departments on the basis of 160% of labor costs.
Journalize the assignment of overhead to the Assembly and Finishing Departments. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles Debit Credit Mar.31

Answer 1

Answer:

Assembly Department

Work In Process $64,160 (debit)

Overheads $64,160 (credit)

Finishing Department

Work In Process $65,120 (debit)

Overheads $65,120 (credit)

Explanation:

Assembly Department

Use of raw materials

Work In Process  $27,100 (debit)

Raw Materials  $27,100 (credit)

Use of factory labor

Work In Process $40,100 (debit)

Salaries and Wages Payable $40,100 (credit)

Assignment of overheads

Note : basis of 160% of labor costs.

Work In Process $64,160 (debit)

Overheads $64,160 (credit)

Finishing Department

Use of raw materials

Work In Process $23,200 (debit)

Raw Materials $23,200 (credit)

Use of factory labor

Work In Process $40,700 (debit)

Salaries and Wages Payable $40,700 (credit)

Assignment of overheads

Note : basis of 160% of labor costs.

Work In Process $65,120 (debit)

Overheads $65,120 (credit)