Question

The Allen Company has the following information for the Assembly Department for the month of October:

Materials purchased $ 45,000
Materials used 49,000
Direct labor 30,000
Actual manufacturing overhead 56,000
Cost of goods completed and transferred to the Finishing Dept. 125,000
Overhead rate is 200 percent of direct labor costs.

Allen Company uses a process costing system for the Assembly Department.
What is the total amount of debits to Work in Process-Assembly Department for October?

Answer 1

the total amount of debits to Work in Process-Assembly Department for October is $139,000

Step-by-step explanation:

given data

Materials purchased = $45,000

Materials use = 49,000

Direct labor = 30,000

Actual manufacture overhead = 56,000

Cost of goods= 125,000

Overhead rate = 200 % of direct labor costs

to find out

the total amount of debits to Work in Process-Assembly Department for October

solution

we know that here amount of debits equation will be

amount of debits = direct material + direct labor + overhead ..................1

here overhead is = overhead rate × direct labor

overhead = 200% × 30,000 = $60,000

put here all value in equation 1

we get

amount of debits = direct material + direct labor + overhead

amount of debits = 49,000 + 30,000 + 60,000

amount of debits = $139,000

so the total amount of debits to Work in Process-Assembly Department for October is $139,000