Bonita Company purchases $54,800 of raw materials on account, and it incurs $61,600 of the factory labor costs. Supporting records show that (a) the Assembly Department used $30,000 of raw materials and $43,000 of the factory labor, and (b) the Finishing Department used the remainder.

Required:
Journalize the assignment of the costs to the processing departments on March 31.

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adnansoomro2019 adnansoomro2019 · Answer 1 · 2020-07-27T03:41:43+02:00

Answer:

We will journalize the assignment of cost as follows

Explanation:

Raw materials = $54,800

Assembly department used = $30,000 of raw material

Finishing department used = $24,800 (remainder)

NOTE: As mentioned above-finishing department use remainder

Entry DEBIT CREDIT

Work in process- Assembly department $30,000

Work in process- Finishing department $24,800

Raw material $54800

Factory labor costs = $61,600

Assembly department used = $43,000 of labor cost

Finishing department used = $18,600 (remainder)

NOTE: As mentioned above-finishing department use remainder

Entry DEBIT CREDIT

Work in process- Assembly department $43,000

Work in process- Finishing department $18,600

Factory labor cost $61,600