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

Entry is given below

Step-by-step 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