Question

Lamp Corp. manufactures wooden desks. Production consists of three processes: cutting, assembly, and finishing. The following costs are for work completed and transferred out of each department in April: Cutting Assembly Finishing Direct materials $7,000 $10,000 $3,000 Direct labor 3,000 14,000 2,000 Applied overhead 4,000 5,000 6,000 There were no work-in-process inventories, and 1,000 desks were produced. Ignoring the transfer entry, the journal entry to assign costs incurred in the assembly process would be

Answer 1

See the journal entry be;ow.

Step-by-step explanation:

Given:

Cutting Assembly Finishing

Direct materials $7,000 $10,000 $3,000

Direct labor 3,000 14,000 2,000

Applied overhead 4,000 5,000 6,000

Therefore, the journal entry to assign costs incurred in the assembly process would be as follows:

Details Debit ($) Credit ($)

Work in process 10,000

Direct material 10,000

(To record cost of direct material.)

Work in process 14,000

Wages payable 14,000

(To record direct labor cost.)

Work in process 5,000

Manufacturing overhead 5,000

(To record manufacturing overhead.)