Question

The gross earnings of the factory workers for Larkin Company during the month of January are $73,000. The employer’s payroll taxes for the factory payroll are $9,200. The fringe benefits to be paid by the employer on this payroll are $6,200. Of the total accumulated cost of factory labor, 83% is related to direct labor and 17% is attributable to indirect labor.

(a) Prepare the entry to record the factory labor costs for the month of January.
(b) Prepare the entry to assign factory labor to production.

Answer 1

Factory Labor 88400

Factory wages 73000

employer payroll taxes 9200

employer fringe benefit 6200

Work In process 88400

Factory Labor 88400

Step-by-step explanation:

Factory Labor 88400

Factory wages payable 73000

employer payroll taxes 9200

employer fringe benefit 6200

work in process inventory 73372

manufacturing overhead 15028