Naylor Company has two processing departments: assembly and finishing. A pre- determined overhead rate of $6 per DLH is used to assign overhead to production. The company experienced the following operating activity for November:

Raw materials issued to assembly, $15,200.

Direct labor cost: assembly, 550 hours at $9.50 per hour; finishing, 400 hours at $8.80 per hour.

Overhead is applied to production.

Goods transferred to finishing, $21,340.

Goods transferred to finished goods warehouse, $25,500.

Actual overhead incurred, $6,000.

oP e nee Required:

1. Prepare the required journal entries for these transactions. 2. Assuming assembly and finishing have no beginning work-in-process inventories, determine the cost of each department's ending work-in-process inventories. LO3