Conversion costs are the combination of direct labor and factory overhead. Assume the conversion costs (see attached) consists of 45% direct labor and the remainder is factory overhead. There is no indirect labor for Tamar Co. What would be the journal entry to record the direct labor incurred (charged/added) to BOTH departments in May?

 

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Costs Added/Incurred in WIP-Assembly Assembly Cost Category Forming Packaging Forming Cost Category Forming Costs (connect) Factor Assembly (multiply) Q21 JE "transferred OUT" N/A 3,177,300.00 Direct Material Costs 599,850.00 1.20 719,820.00 Direct Material Costs 599,850.00 0.60 Other DM 359,910.00 Conversion Costs 1,199,700.00 1.50 Conversion 1,799,550.00 Total Costs 6,056,580.00 Added/Incurred Costs Added/Incurred in WIP-Assembly Assembly Cost Category Forming Packaging Forming Cost Category Forming Costs (connect) Factor Assembly (multiply) Q21 JE "transferred OUT" N/A 3,177,300.00 Direct Material Costs 599,850.00 1.20 719,820.00 Direct Material Costs 599,850.00 0.60 Other DM 359,910.00 Conversion Costs 1,199,700.00 1.50 Conversion 1,799,550.00 Total Costs 6,056,580.00 Added/Incurred

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Forming Work in process Direct Labor 539865 Salary Payable 539865 Assembly Work in process Direct La... View the full answer