Answer:
Work In Process : Assembly Department $63,520 (debit)
Work In Process : Finishing Department $34,720 (debit)
Overhead $98,240 (credit)
Step-by-step explanation:
Overhead allocations are based on the labor cost.Thus, First determine the amounts of labor costs allocated to the Departments.
Labor Cost Allocation :
Assembly Department = $39,700
Finishing Department = $21,700 that is (61,400 -39,700)
Overhead Allocation :
Assembly Department ($39,700 × 160%) = $63,520
Finishing Department ($21,700 × 160%) = $34,720