Diewold Company has the following records related to Actual factory overheads. Milling Department : $145,000 Assembly Department:
Question:
Diewold Company has the following records related to Actual factory overheads. Milling Department : $145,000 Assembly Department: $136,000 Transporting Department: $150,000 which is distributed among departments on the basis of number of employees. The employees in Milling, Assembly and Cleaning departments are 60,30 and 10 respectively. Cleaning Department: $50,000 which is distributed to production departments on the basis of covered area. The covered areas of Milling and , Assembly departments are 3,000 square feet, and 2,000 square feet respectively.
Required:
1- Distribute the services department cost to production department using sequential method. NOTE: Show only logical calculations as in ratio proportion distribution there is no need to make the formatted table as per book. (6)
2- Make Journal Entries by using multiple entries method to close Actual FOH to Departmental FOH Accounts and the distribution of services department FOH to production Departments.
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso