Question

Recording Factory Labor Costs

A summary of the time tickets for January is as follows:

Job No.	Amount		Job No.	Amount
3467	$5,133		3478	$6,844
3470	2,584		3480	7,434
3471	8,472		3497	9,499
Indirect labor	16,048		3501	13,133

a. Determine the amounts of factory labor costs transferred to Work in Process and Factory Overhead for January.

Factory labor costs transferred to Work in Process	$
Factory labor costs transferred to Factory Overhead	$

b. Illustrate the effect on the accounts and financial statements of the factory labor costs transferred in (a).

If no account or activity is affected, select "No effect" from the drop-down list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts.

Statement of Cash Flows	Balance Sheet
	Assets			=	Liabilities	+	Stockholders' Equity
		+		=		+
Statement of Cash Flows								Income Statement

Answer 1

Answer:
(a)
Job No.	Amount
3467	$ 5,133
3470	$ 2,584
3471	$ 8,472
3478	$ 6,844
3480	$ 7,434
3497	$ 9,499
3501	$ 13,133
Factory labor costs transferred to Work in Process	$ 53,099
Factory labor costs transferred to Factory Overhead ( Indirect labor )	$ 16,048

Statement of Cash Flows			Balance Sheet
Assets			=	Liabilities	+	Stockholders' Equity
Work in process	+	Factory overhead	=	Wages payable	+	No effect
	$ 53,099	+	$ 16,048	=	$ 69,147
Statement of Cash Flows							Income Statement
No effect							No effect