How to journalize the entry
On July 1, 2010, Crowe Co. pays $19,088 to Zubin Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Crowe Co. journalize the entry on July 1 and the adjusting entry on December 31.
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Beginning work in process inventory: 2000 tires, 100% complete for direct materials, 60% complete for coversion costs, cost of direct materials=$12,000, cost of direct labor and manufacturing overhead allocated=$10,000
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Stan Loy owns the Vista Barber Shop. He employs 5 barbers and pays each a base rate of $1,070 per month. One of the barbers serves as the manager and receives an extra $502 per month.
Allocate the overhead costs to the producing departments using the direct method and then compute the total overhead cost for each producing department.
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