Farrel Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year:Direct labor cost $ 574,000Manufacturing overhead: Indirect labor cost $ 163,000Other manufacturing overhead costs incurred $ 584,000What is the journal entry to record the direct and indirect labor costs incurred during the year? Multiple ChoiceWages Payable 737,000 Direct Labor 574,000Manufacturing Overhead 163,000Direct Labor 574,000 Manufacturing Overhead 163,000 Wages Payable 737,000Wages Payable 737,000 Work in Process 574,000Manufacturing Overhead 163,000Work in Process 574,000 Manufacturing Overhead 163,000 Wages Payable 737,000

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Business

Raphael Novak

23 May, 08:10

Farrel Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year:Direct labor cost $ 574,000Manufacturing overhead: Indirect labor cost $ 163,000Other manufacturing overhead costs incurred $ 584,000What is the journal entry to record the direct and indirect labor costs incurred during the year? Multiple ChoiceWages Payable 737,000 Direct Labor 574,000Manufacturing Overhead 163,000Direct Labor 574,000 Manufacturing Overhead 163,000 Wages Payable 737,000Wages Payable 737,000 Work in Process 574,000Manufacturing Overhead 163,000Work in Process 574,000 Manufacturing Overhead 163,000 Wages Payable 737,000

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Austin Key · Answer 1

Direct Labor 574,000 Manufacturing Overhead 163,000 Wages Payable 737,000

Explanation:

The journal entry is shown below:

Work in process A/c Dr $574,000

Manufacturing overhead A/c Dr $163,000

To Wages payable A/c $737,000

(Being direct and the indirect cost is recorded)

For recording this given transaction, we debited the work in process account and manufacturing overhead account and credited the wages payable with the total amount