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16 November, 00:16

Prepare journal entries to record the following production activities for Hotwax. 1. Incurred direct labor of $200,000 (credit Factory Payroll Payable). 2. Incurred indirect labor of $11,500 (credit Factory Payroll Payable). 3. Total factory payroll of $211,500 was paid in cash.

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  1. 16 November, 01:55
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    a. Debit Work-in - Progress with $200,000, and credit factory payroll payable with $200,000.

    b. Debit factory overhead with $11,500, and credit factory payroll payable with $11,500.

    c. Debit factory payroll payable with $211,500, and credit Cash with $211,500.

    Explanation:

    This will appear as follows in the account:

    Hotwax's Journal Entries

    Details Dr ($) Cr ($)

    Work-in - Progress 200,000

    Factory payroll payable 200,000

    Being direct labor cost incurred

    Factory overhead 11,500

    Factory payroll payable 11,500

    Being the indirect labor cost incurred

    Factory payroll payable 211,500

    Cash 211,500

    Being total factory payroll or labor cost paid in cash
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