The Allen Company has the following information for the Assembly Department for the month of October: $\begin{array}{lr}
\text { Materials purchased } & 45,000 \
\text { Materials used } & 49,000 \
\text { Direct labor } & 30,000 \
\text { Actual manufacturing overhead } & 56,000 \
\text { Cost of goods completed and transferred to the Finishing Dept. } & 125,000
\end{array}$ Overhead rate is 200 percent of direct labor costs. Allen Company uses a process costing system for the Assembly Department.
What is the total amount of debits to Work in Process-Assembly Department for October?
A)$125,000
B)$131,000
C)$139,000
D)$109,000

Question

Quizplus · Accepted Answer

The total amount of debits to Work in Process-Assembly Department for October includes materials used, direct labor, and applied manufacturing overhead. The applied manufacturing overhead is 200% of direct labor costs, which is $30,000 * 200% = $60,000. Therefore, the total debits are $49,000 (materials used) + $30,000 (direct labor) + $60,000 (applied overhead) = $139,000.

The Allen Company Has the Following Information for the Assembly