Question

EA14.

LO 4.7A company’s individual job sheets show these costs:



Overhead is applied at 1.25 times the direct labor cost. Use the data on the cost sheets to perform these tasks:

Apply overhead to each of the jobs.
Prepare an entry to record the assignment of direct materials to work in process.
Prepare an entry to record the assignment of direct labor to work in process.
Prepare an entry to record the assignment of manufacturing overhead to work in process.

Answer 1

work in process debit

raw materials inventory credit

--to record assignment of DM to work in process--

work in process debit

wages payable credit

--to record assignment of Labor to work in process--

work in process debit

manufacturing overhead credit

--to record assignment of MO to work in process--

Step-by-step explanation:

We are n't given with numbers but we can determinate the account and were to post the value

a) Our materials stock decrease so we credited. We will debit WIP in order to balance the entry.

b) WIP as qualifies as assets (later it will become finished product that once sold will generate cash for the company) Thus, we need to debited. In the credit side there are two possible options:

if labor weren't paid then it will wages payable. If they were; we will credit cash to represent it.

c) for MO we credit for the allocate amount and debit WIP

At the end of the period, once we got the actual Manufacturing Overhead we will adjust