Bramble Company purchases $50,500 of raw materials on account, and it incurs $61,400 of factory labor costs. Supporting records show that (a) the Assembly Department used $25,100 of the raw materials and $39,700 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.)

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Business

Alivia Barker

Yesterday, 22:20

Bramble Company purchases $50,500 of raw materials on account, and it incurs $61,400 of factory labor costs. Supporting records show that (a) the Assembly Department used $25,100 of the raw materials and $39,700 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.)

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Noemi Walters · Answer 1

Work In Process : Assembly Department $63,520 (debit)

Work In Process : Finishing Department $34,720 (debit)

Overhead $98,240 (credit)

Explanation:

Overhead allocations are based on the labor cost. Thus, First determine the amounts of labor costs allocated to the Departments.

Labor Cost Allocation:

Assembly Department = $39,700

Finishing Department = $21,700 that is (61,400 - 39,700)

Overhead Allocation:

Assembly Department ($39,700 * 160%) = $63,520

Finishing Department ($21,700 * 160%) = $34,720