Question

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)

Answer 1

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.