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Hamada company uses normal costing to cost each job

Accounting

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Hamada company uses normal costing to cost each job. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead, allocated on the basis of direct manufacturing labor costs). During 2020, Direct materials used $710,000. The journal entry is:

a.
Materials Control debit $710,000 and Accounts Payable Control credit $710,000.

b.
Accounts Payable Control debit $710,000 and Materials Control credit $710,000.

c.
Work-in-Process Control debit $710,000 and Materials Control credit $710,000.

d.
Materials Control debit $710,000 and Work-in-Process Control credit $710,000.







 

Kia Corporation has two departments, A and B. Central costs could be allocated to the two departments in various ways. Square footage of department A and B 6,000 and 18,000 square feet respectively, Number of employees of department A and B 1,120 and 480 respectively, and sales of department A and B $400,000 and $2,000,000 respectively. If total rent expense of $288,000 is allocated on the basis of square footage, the amount allocated to Department B would be:

a.
$216,000

b.
$72,000

c.
$86,400

d.
$240,000