24) During the month, Barrera Manufacturing incurred (not paid) $45,000 in direc

Question

24) During the month, Barrera Manufacturing incurred (not paid) $45,000 in direct labor costs in 24) Department 1, $22,000 direct labor costs in Department 2, and $3500 of indirect labor costs. Which of the following is NOT part of the summary journal entry to record these transactions? Process costing is used A) debit to Work-in- Process Inventory for $70,50D B) debit to Manufacturing Overhead for $3500 O) debit to Work- in- Process Inventory-Department 1 for $45,000 D) credit to Wages Payable for $70,500 25) Galley Company, a manufacturer of small kitchen appliances, had the following activities, 25) allocated costs, and allocation bases: Activities Account in Account billing (lines Account verification (accou Correspondence (letters) Allocated Costs Allocation Base 2000 hou 15,000 lin $66,000 $47,000 $17,000 $14,000 23,000 account 1400 lett The above activities are carried out at two of its regional offices Northeast Office Midwest Office Activities Account Account billing (lines Account verification (accounts Correspondence (letters 250 hours 8000 line hours) 100 hou 12,000 li 500 account 700 accoun 40 letter 100 letter What is the cost per line for the account billing activity? (Round your answer to the nearest cent.) B) $23.50 C) $33.00 D) $3.13 A) S4.40

Explanation / Answer

24) Journal entry :

so answer is a) Debit to work in process inventory for $70500

25) Calculate account billing activity cost per line :

Account billing cost per line = Total cost/total base

                                         = 47000/15000

Account billing cost per line = 3.13 per line

so answer is d) $3.13

Date accounts & explanation debit credit Work in process- Department 1 45000 Work in process-department 2 22000 Manufacturing overhead a/c 3500 Wages payable a/c 70500

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