87.1k views
2 votes
Bramble Company purchases $50,500 of raw materials on account, and it incurs $61,400 of factory labor costs. Supporting records show that (a) the Assembly Department used $25,100 of the raw materials and $39,700 of the factory labor, and (b) the Finishing Department used the remainder. Manufacturing overhead is assigned to departments on the basis of 160% of labor costs. Journalize the assignment of overhead to the Assembly and Finishing Departments. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

User Jakie
by
7.8k points

1 Answer

3 votes

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

User Blami
by
8.4k points