Weber Company purchases $50,500 of raw materials on account, and it incurs $61,4

Question

Weber 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 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.

Weber Company purchases $50,900 of raw materials on account, and it incurs $63,300 of factory labor costs. Supporting records show that (a) the Assembly Department used $30,500 of raw materials and $38,300 of the factory labor, and (b) the Finishing Department used the remainder.

Journalize the assignment of the costs to the processing departments on March 31.

Explanation / Answer

1)Labor cost ofr Finishing department = 61400 -39700 = 21700

2)Labor cost ofor finishing department = 63300 - 38300 = 25000

Account title Debit credit Work in process -Assembly Department [39700*160%] 63520 Work in process -finishing department     [21700*160%] 34720 Manufacturing overhead 98240

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