Weber Company purchases $52,200 of raw materials on account, and it incurs $62,200 of factory labor costs. Supporting records show that a. The Assembly Department used $31,900 of raw materials and $44,200 of the factory labor. b. The Finishing Department use 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.

Question

Business

Destiny Cooley

17 August, 03:08

Weber Company purchases $52,200 of raw materials on account, and it incurs $62,200 of factory labor costs. Supporting records show that a. The Assembly Department used $31,900 of raw materials and $44,200 of the factory labor. b. The Finishing Department use 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.

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Rayne Foley · Answer 1

This problem requires us to pass journal entry to assign overhead to the Assembly and Finishing Departments.

We know that overhead is allocated on estimation basis through applied overhead account. The basis of assignment is given in the question. The overhead will be assigne/recorded in relevant department work in process cost account. The journal entry is given below.

Debit Assembly WIP Account $ 70,720

(44,200*1.6 = 70.720)

Debit Finishing WIP Account $ 28,000

((62,200-44,200) * 1.6 = 28,800)

Credit Factory Overhead applied Account $ 99,520