Prepare journal entries to record the following production activities.

a. Incurred $75,000 of direct labor in production (credit Factory Payroll Payable).

b. Incurred $20,000 of indirect labor in production (credit Factory Payroll Payable).

c. Paid factory payroll.

Question

Business

Morse

7 April, 18:28

Prepare journal entries to record the following production activities.

a. Incurred $75,000 of direct labor in production (credit Factory Payroll Payable).

b. Incurred $20,000 of indirect labor in production (credit Factory Payroll Payable).

c. Paid factory payroll.

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Answers (1)

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Brady Jordan · Answer 1

1. Dr Work in progress inventory75,000

Dr Payable Factory payroll 75,000

2. Dr Factory overhead 20,000

Cr Factory Payroll Payable 20,000

3. Dr Factory wages payable 95,000

(75,000+20,000)

Cr Cash 95,000

Explanation:

Preparation to record Journal entry

1. Since the amount of $75,000 was been Incurred of the direct labour production this means we have to record the transaction as:

Dr Work in progress inventory75,000

Dr Payable Factory payroll 75,000

2. Since the amount of $20,000 was Incurred of indirect labor in production this means we have to record the transaction as:

Dr Factory overhead 20,000

Cr Factory Payroll Payable 20,000

3. Since factory payroll was paid the transaction will be recorded as:

Dr Factory wages payable 95,000

(75,000+20,000)

Cr Cash 95,000

Prepare journal entries to record the following production activities.a. Incurred $75,000 of direct labor in production (credit Factory Payroll Payable).b. Incurred $20,000 of indirect labor in production (credit Factory Payroll Payable).c. Paid factory payroll.

Prepare journal entries to record the following production activities.

a. Incurred $75,000 of direct labor in production (credit Factory Payroll Payable).

b. Incurred $20,000 of indirect labor in production (credit Factory Payroll Payable).

c. Paid factory payroll.