Warner Company purchases $54,700 of raw materials on account, and it incurs $63,300 of factory labor costs. Supporting records show that (a) the Assembly Department used $32,100 of raw materials and $42,600 of the factory labor, and (b) the Finishing Department use the remainder.

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Explanation:

The process of journalizing is to allocate debits and credits on a table to make transparent and easier to know how much resources a company has for a determined area. In this case, for example, we know how much Warner has available to spend on labor costs and how much it has in raw material. From that point on, each area should inform how much of each resource it will need (in this case the Finishing Department used the remainder of the resources) and, journalizing that information, it should be easy to see if it is possible or not and from that point make strategic decisions.    

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