Question

Prepare the journal entries to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Fermenting Department. Assume labor costs are accrued and not yet paid. Also prepare the journal entry to record the cost of the gallons completed and transferred out to the Packaging Department. Begin with the summary journal entry to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Fermenting Department.

Answer 1

Answer:

Note: The full question is attached below

Date      Accounts Title and Explanation        Debit     Credit

Mar-31   WIP-Fermenting Department            $15,971

                     Raw Material Inventory                                $9,288

                     Wages payable                                             $3,305

                     Manufacturing Overhead                             $3,378

              (Being cost assigned to WIP-Fermenting department)