Entry for Factory Labor Costs A summary of the time tickets for the current month follows: Job No. Amount 100 $3,500 101 6,650 104 21,900 108 14,440 Indirect 9,100 111 8,620 115 2,760 117 18,550 Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.

Question

Business

Madelyn Stephens

29 November, 03:15

Entry for Factory Labor Costs A summary of the time tickets for the current month follows: Job No. Amount 100 $3,500 101 6,650 104 21,900 108 14,440 Indirect 9,100 111 8,620 115 2,760 117 18,550 Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.

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Elianna Stanton · Answer 1

The journal entry is as follows:

Work in progress account Dr. $76,420

Factory Overhead accounts Dr. $9,100

To wages payable A/c $85,520

(To record the factory labor cost)

Workings:

All the direct cost related to labor will go to the work in progress account and the indirect cost will go to the Factory Overhead account.

Work in progress:

= $3,500 + 6,650 + 21,900 + 14,440 + 8,620 + 2,760 + 18,550

= $76,420

Factory overhead = Indirect labor and it is given in the question

= $9,100