24E-f - Horngren'S Financial And Managerial Accounting

Question

Question: Journalize the following transactions for Marge’s Sofas. Explanations are not required.

f. Allocated manufacturing overhead to jobs, 200% of direct labor costs.

Step-by-Step Solution

Answer

Date	Particulars	Debit ($)	Credit ($)
	Work-in-process inventory (200% of 11,250)	22,500
	Manufacturing overhead		22,500

Step-by-Step Solution: Step 1: Work-in-process inventory

Work in process inventory means the inventory that are partially completed and partially not. The inventory under manufacturing process is known as WIP inventory.

Step 2: Recording of allocated manufacturing overhead in the books of the company

The allocated manufacturing overhead is recorded by debiting the work in process inventory and crediting the manufacturing overhead account.