Question

Hi I have a question I don't understand the part b of this problem it's for...

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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