The Allen Company has the following information for the Assembly Department for the month of October: 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 Dept. 125,000Overhead rate is 200 percent of direct labor costs. Allen Company uses a process costing system for the Assembly Department.The journal entry to record materials purchased would include a a. debit to Materials Inventory for $49,000. b. credit to Accounts Payable for $49,000. c. debit to Materials Inventory for $45,000. d. both "debit to Materials Inventory for $49,000" and "credit to Accounts Payable for $49,000".

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  1. The Allen Company has the following information for the Assembly Department for the month of October:

    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 Dept. 125,000
    Overhead rate is 200 percent of direct labor costs.

    Allen Company uses a process costing system for the Assembly Department.The journal entry to record materials purchased would include a
    a. debit to Materials Inventory for $49,000.
    b. credit to Accounts Payable for $49,000.
    c. debit to Materials Inventory for $45,000.
    d. both "debit to Materials Inventory for $49,000" and "credit to Accounts Payable for $49,000".
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