Distributing service department costs, making journal entries, and posting to accounts. Data for prorating service department costs for Kingstown Inc. for November 19X6 are given below.

Instructions 1. Open departmental overhead analysis sheets for each department using the balances for overhead expenses given above. Open a general ledger account for Manufacturing Overhead Control 501 with a debit balance of $26,760.

2. Prepare the worksheet for prorating service department costs. Use the proration percentages given on page 158. Allocate Maintenance Department costs first:
then allocate General Factory Department costs. Round the amounts to the nearest dollar. Post the allocations to the departmental overhead analysis sheets. Total the, departmental analysis sheets.
3. Prepare the general journal vouchers to distribute the service departments’ costs to the other departments. Begin with Journal Voucher 11-22.

a. Close the Manufacturing Overhead Control account into the special department overhead accounts.

b. Allocate Maintenance Department costs to the other four departments.

c. Allocate General Factory Department costs to the three producing departments.
4. Post the general journal entries to the general ledger accounts. (NOTE: The balance in each general ledger account should agree with the total on the corresponding departmental overhead analysis sheet.)

Transcribed Image Text:

Account Overhead Number Department Expenses Department 502 Preparing $ 6,544 25% Allocation of Maintenance Allocation of General Factory Department 30% 503 Assembling 7,241 35% 40% 504 Finishing 6,428 25% 30% 505 Maintenance 3,129 506 General Factory 3,418 15% Total $26,760 100% 100%