Question

A summary of the time tickets for the current month follows:
Job No. Amount
100 $ 3,860
101 4,300
104 24,500
108 18,600
Indirect 6,340
111 7,120
115 7,400
117 32,000
Journalize the entry on Dec. 31 to record the factory labor costs.

Answer 1

Answer:

Entry is given below

Explanation:

Entry for factory labor cost

DATE          ACCOUNT                         DEBIT        CREDIT

DEC 31     Work in Progress(w)          $97,780

                Factory overhead              $6,340

                 Wages payable                                     $104,120

Working

Work in progress =  3,860+4,300+24,500+18,600+7120+7400+32,000

Work in progress = 97,780

NOTE: Work in progress is sum of all direct labor cost

Factory Overhead = all indirect labor cost which is only $6,130