Baxter Company has two processing departments: Assembly and Finishing. A predetermined overhead rate of $10 per DLH
Question:
a. Materials issued to Assembly, $24,000
b. Direct labor cost: Assembly, 500 hours at $9.20 per hour; Finishing, 400 hours at $8 per hour
c. Overhead applied to production
d. Goods transferred to Finishing, $32,500
e. Goods transferred to finished goods warehouse, $20,500
f. Actual overhead incurred, $10,000
Required:
1. Prepare the required journal entries for the preceding transactions.
2. Assuming Assembly and Finishing have no beginning work-in-process inventories, determine the cost of each department’s ending work-in-process inventories.
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Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
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