Question

A summary of the time tickets for the current month follows:

Job No. Amount
100 $2,060
101 1,710
104 3,130
108 3,520
Indirect labor 10,980
111 2,150
115 1,410
117 9,540

Required:
Journalize the entry to record the factory labor costs.

Answer 1

Answer and Explanation:

The journal entry to record the factory labor cost is shown below:

Work in progress ($2,060 + $1,710 + $3,130 + $3,520 + $2,150 + $1,410 + $9,540) $23,520

Factory Overhead $10,980

To wages payable $34,500

(to record the factory labor cost)

Here work in process and factory overhead is debited as it increased the assets and expenses and credited the wages payable as it also increased the liabilities