Question

In: Accounting

Warner Company purchases $54,900 of raw materials on account, and it incurs $63,300 of factory labor...

Warner Company purchases $54,900 of raw materials on account, and it incurs $63,300 of factory labor costs. Supporting records show that (a) the Assembly Department used $30,600 of raw materials and $40,100 of the factory labor, and (b) the Finishing Department used the remainder.

Journalize the assignment of the costs to the processing departments on March 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Mar. 31

enter an account title to record materials used on March 31

enter a debit amount

enter a credit amount

enter an account title to record materials used on March 31

enter a debit amount

enter a credit amount

enter an account title to record materials used on March 31

enter a debit amount

enter a credit amount

(To record materials used)

31

enter an account title to assign factory labor to production

enter a debit amount

enter a credit amount

enter an account title to assign factory labor to production

enter a debit amount

enter a credit amount

enter an account title to assign factory labor to production

enter a debit amount

enter a credit amount

(To assign factory labor to production)

Solutions

Expert Solution

item date Account Title and Explanation Debit Credit
1 31-Mar Work in process-Assembly department $30,600
Work in process-Finishing department ($54900- $30600) $   24,300
                        Raw Material Inventory $       54,900
(To record materials used)
2 31-Mar Work in process-Assembly department $40,100
Work in process-Finishing department ($63300- $40100) $23,200
                        Factory Labor $63,300
(To assign factory labor to production)

There is no information about finished goods or transfer from one process to another, so assumption is taken as both are still in progress and no transfer were made to either one or finished goods.

hence, the amounts are transferred to the WIP of each department.


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