**Allen Company - Assembly Department Financial Overview for October****Costs and Expenditures:**- **Materials Purchased:** $45,000- **Materials Used:** $49,000- **Direct Labor:** $30,000- **Actual Manufacturing Overhead:** $56,000- **Cost of Goods Completed and Transferred to the Finishing Department:** $125,000**Additional Information:**- The overhead rate is 200% of direct labor costs.**Journal Entry Options for Transferring Goods:**Allen Company uses a process-costing system for its Assembly Department. The appropriate journal entry to record goods completed and transferred out of the Assembly Department and into the Finishing Department could include one of the following:- a. Debit to Finished Goods Inventory for $125,000.- b. Debit to Work in Process—Assembly for $125,000.- c. Credit to Materials Inventory for $125,000.- d. Debit to Work in Process—Finishing for $125,000.**Note:** The correct entry depends on the company's accounting policies and flow of costs.

Name: **Allen Company - Assembly Department Financial Overview for October*
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Description: **Allen Company - Assembly Department Financial Overview for October****Costs and Expenditures:**- **Materials Purchased:** $45,000- **Materials Used:** $49,000- **Direct Labor:** $30,000- **Actual Manufacturing Overhead:** $56,000- **Cost of Goods

Process-costing is the method of cost accounting used in the manufacturing entities where the…

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Accounting

Allen Company has the following information for the Assembly Department for the month of October: Materials purchased Materials used Direct labor Actual manufacturing overhead Cost of goods completed and transferred to the Finishing Department. Overhead rate is 200% of direct labor costs. $ 45,000 49,000 30,000 56,000 125,000 1 more notification Allen Company uses a process-costing system for the Assembly Department. The journal entry to record goods completed and transferred out of the Assembly Department and into the Finishing Department would include a Oa. debit to Finished Goods Inventory for $125,000. Ob. debit to Work in Process Assembly for $125,000. Oc. credit to Materials Inventory for $125,000. Od. debit to Work in Process Finishing for $125,000.

Allen Company has the following information for the Assembly Department for the month of October: Materials purchased Materials used Direct labor Actual manufacturing overhead Cost of goods completed and transferred to the Finishing Department. Overhead rate is 200% of direct labor costs. $ 45,000 49,000 30,000 56,000 125,000 1 more notification Allen Company uses a process-costing system for the Assembly Department. The journal entry to record goods completed and transferred out of the Assembly Department and into the Finishing Department would include a Oa. debit to Finished Goods Inventory for $125,000. Ob. debit to Work in Process Assembly for $125,000. Oc. credit to Materials Inventory for $125,000. Od. debit to Work in Process Finishing for $125,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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