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Journal Entries, Cost of Ending Inventories Baxter Company has two processing departments: Assembly and Finishing. A...

  1. Journal Entries, Cost of Ending Inventories

    Baxter Company has two processing departments: Assembly and Finishing. A predetermined overhead rate of $10 per DLH is used to assign overhead to production. The company experienced the following operating activity for April:

    1. Materials issued to Assembly, $25,000
    2. Direct labor cost: Assembly, 500 hours at $9.20 per hour; Finishing, 400 hours at $7 per hour
    3. Overhead applied to production
    4. Goods transferred to Finishing, $33,500
    5. Goods transferred to finished goods warehouse, $20,500
    6. Actual overhead incurred, $10,000

    Required:

    1. Prepare the required journal entries for the preceding transactions. For a compound transaction, if an amount box does not require an entry, leave it blank.

    a. Work in Process-Assembly
    Materials Inventory
    b. Work in Process-Assembly
    Work in Process-Finishing
    Wages Payable
    c. Work in Process-Assembly
    Work in Process-Finishing
    Overhead Control
    d. Work in Process-Finishing
    Work in Process-Assembly
    e. Finished Goods
    Work in Process-Finishing
    f. Overhead Control
    Miscellaneous Accounts

    2. Assuming Assembly and Finishing have no beginning work-in-process inventories, determine the cost of each department's ending work-in-process inventories.

    Ending Inventory
    Work in Process—Assembly $
    Work in Process—Finishing $
0 0
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Answer #1

25,000 25,000 4,600 2.800 7,400 Requirement1 a. Work in Process-Assembly Materials Inventory 6. Work in Process-Assembly (500

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