Question

Prepare the journal entries to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Fermenting Department. Assume labor costs are accrued and not yet paid. Also prepare the journal entry to record the cost of the gallons completed and transferred out to the Packaging Department. Begin with the summary journal entry to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Fermenting Department.

Answer 1

Note: The full question is attached below

Date Accounts Title and Explanation Debit Credit

Mar-31 WIP-Fermenting Department $15,971

Raw Material Inventory $9,288

Wages payable $3,305

Manufacturing Overhead $3,378

(Being cost assigned to WIP-Fermenting department)