Description Amount Description Amount Job No. 321 $11,000 Job No. 342 $8,300 Job No. 329 9,200 Job No. 346 5,700 Job No. 336 5,000 Indirect labor 8,000 Present the journal entries to record (a) the labor cost incurred and (b) the application of factory overhead to production for August. The factory overhead rate is 70% of direct labor cost.

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Business

Arthur

11 August, 05:53

Description Amount Description Amount Job No. 321 $11,000 Job No. 342 $8,300 Job No. 329 9,200 Job No. 346 5,700 Job No. 336 5,000 Indirect labor 8,000 Present the journal entries to record (a) the labor cost incurred and (b) the application of factory overhead to production for August. The factory overhead rate is 70% of direct labor cost.

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Angelique York · Answer 1

The journal entries are as follows

a. Work in process $39,200

Factory overhead $8,000

To Wages payable $47,200

(Being the labor cost incurred is recorded)

The computation is shown below:

= $11,000 + $8,300 + $9,200 + $5,700 + $5,000

= $39,200

b. Work in process

To Factory overhead

(Being the factory overhead is recorded)

It is computed below:

= $39,200 * 70%

= $27,440