Hi I have a question I don't understand the part b of this problem it's for Accounting 212
Entries for Direct Labor and Factory Overhead
Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets for November jobs are summarized as follows:
Job 11-101 | $6,240 |
Job 11-102 | 9,000 |
Job 11-103 | 7,210 |
Job 11-104 | 6,750 |
Factory supervision | 4,000 |
Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $18 per direct labor hour. The direct labor rate is $40 per hour.
a. Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.
Work in Process | |||
Factory Overhead | |||
Wages Payable |
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a. Increase the work in process for the direct labor and factory overhead for the indirect labor.
b. Journalize the entry to apply factory overhead to production for November.
Work in Process | |||
Factory Overhead |
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