Question: Journalize the following transactions for Marge’s Sofas. Explanations are not required.
f. Allocated manufacturing overhead to jobs, 200% of direct labor costs.
Work-in-process inventory (200% of 11,250)
Work in process inventory means the inventory that are partially completed and partially not. The inventory under manufacturing process is known as WIP inventory.
The allocated manufacturing overhead is recorded by debiting the work in process inventory and crediting the manufacturing overhead account.
June production generated the following activity in Bentley Chassis Company’s Work-in-Process Inventory account:
June 1 balance
Direct materials used
Direct labor assigned to jobs
Manufacturing overhead allocated to jobs
Additionally, Bentley Chassis has completed Jobs 142 and 143, with total costs of $37,000 and $48,000, respectively.
2. Open a T-account for Work-in-Process Inventory. Post the journal entry made in Requirement 1. Compute the ending balance in the Work-in-Process Inventory account on June 30.
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