Figure 6-1 Allen Company has the following information for the Assembly Department for October 2011:
Overhead rate is 200 percent of direct labor costs.
Allen Company uses a process costing system for the Assembly Department.
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Refer to Figure 6-1.What is the total amount of debits to Work in Process-Assembly Department for October?
A) $120,000
B) $126,000
C) $134,000
D) cannot be determined

Question

Figure 6-1 Allen Company has the following information for the Assembly Department for October 2011:
 Overhead rate is 200 percent of direct labor costs.
Allen Company uses a process costing system for the Assembly Department.
-
Refer to Figure 6-1.What is the total amount of debits to Work in Process-Assembly Department for October?
A) $120,000 
B) $126,000 
C) $134,000 
D) cannot be determined

Quizplus · Accepted Answer

The total amount of debits to Work in Process-Assembly Department for October is $134,000. This is the sum of the direct materials used ($50,000), direct labor ($40,000), and manufacturing overhead applied ($44,000).

Figure 6-1 Allen Company Has the Following Information for the Assembly