Weber Company purchases $44,270 of raw materials on account, and it incurs $52,730 of factory labor costs. Supporting records show that (a) the Assembly Department used $27,580 of raw materials and $33,320 of the factory labor, and (b) the Finishing Department used the remainder. Manufacturing overhead is assigned to departments on the basis of 150% of labor costs.

Journalize the assignment of overhead to the Assembly and Finishing Departments.

Account Titles and Explanation Debit Credit

Question

Business

Patience Richards

30 May, 08:16

Weber Company purchases $44,270 of raw materials on account, and it incurs $52,730 of factory labor costs. Supporting records show that (a) the Assembly Department used $27,580 of raw materials and $33,320 of the factory labor, and (b) the Finishing Department used the remainder. Manufacturing overhead is assigned to departments on the basis of 150% of labor costs.

Journalize the assignment of overhead to the Assembly and Finishing Departments.

Account Titles and Explanation Debit Credit

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Answers (1)

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Harrison · Answer 1

Assembly Department - Work In Process $49,960 (debit)

Finishing Department - Work In Process $29,115 (debit)

Overheads $79,075 (credit)

Explanation:

Assembly Department

Assembly Department - Work In Process $110,860 (debit)

Raw Materials $27,580 (credit)

Salaries and Wages Payable $33,320 (credit)

Overheads $49,960 (credit)

Finishing Department

Finishing Department - Work In Process $65,215 (debit)

Raw Materials $16,690 (credit)

Salaries and Wages Payable $19,410 (credit)

Overheads $29,115 (credit)

Summary - assignment of overhead

Assembly Department - Work In Process $49,960 (debit)

Finishing Department - Work In Process $29,115 (debit)

Overheads $79,075 (credit)