The gross earnings of factory workers for Dinkel Company during the month of January are $400,000. The employer's payroll taxes for the factory payroll are $48,000. Of the total accumulated cost of factory labor, 75% is related to direct labor and 25% is attributable to indirect labor. Prepare the entry to record the factory labor costs for the month of January.

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Business

Georgia Russo

17 September, 13:02

The gross earnings of factory workers for Dinkel Company during the month of January are $400,000. The employer's payroll taxes for the factory payroll are $48,000. Of the total accumulated cost of factory labor, 75% is related to direct labor and 25% is attributable to indirect labor. Prepare the entry to record the factory labor costs for the month of January.

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Alvin Reilly · Answer 1

The entry to record the factory labor costs for the month of January.

Date Amount title and Explanation Post ref Debit Credit

Factory labor $448,000

Factory wages payable $400,000

Employer payroll taxes payable $48,000'

(To record the factory labor cost)

Explanation:

Factory labor = $400,000 + $48,000

= $448,000