Question

A summary of the time tickets is as follows:

Job No.	Amount
100	$2,150
101	1,780
104	3,270
108	3,720
Indirect	11,460
111	2,270
115	1,490
117	10,080

Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.

Answer 1

• Direct Labor cost is debited to Work in Process account.
• The Indirect Labor cost is debited to Factory overhead or Manufacturing overhead accounts.
• Workings

Job No.	Amount
100	$2,150
101	$1,780
104	$3,270
108	$3,720
111	$2,270
115	$1,490
117	$10,080
Direct Labor cost	$24,760
Indirect	$11,460
Total Labor Cost paid or payable	$36,220

• Journal entry

Accounts title	Debit	Credit
Work in Process Inventory	$24,760
Factory Overheads [or Manufacturing Overheads]	$11,460
Labor Cost Payable [or Cash]		$36,220