Question

Entry for Factory Labor Costs

A summary of the time tickets for the current month follows:

Job No.	Amount
100	$2,140
101	1,780
104	3,250
108	3,750
Indirect	11,410
111	2,290
115	1,500
117	10,160

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

Answer 1

Account Titles and Explanation	Debit	Credit
Work-in-Process          [Refer working note 1]	$24,870
Factory overhead         [Refer working note 2]	$11,410
Wages Payable [$24,870 + $11,410]		$36,280
(To record labor cost)

.

Working Note 1:

Direct labor cost is to be debited to the "Work-in-process" account.

Direct labor cost = $2,140 + 1,780 + $3,250 + $3,750 + $2,290 + $1,500 + $10,160 = $24,870

.

Working Note 2:

Indirect labor cost is to be debited to the "Factory overhead" account.

Indirect labor cost = $11,410