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Entries for Direct Labor and Factory Overhead

Schumacher Industries Inc. manufactures recreational vehicles. Schumacher Industries uses a job order cost system. The time tickets from June jobs are summarized as follows:

Job 11-101 $4,640
Job 11-102 5,510
Job 11-103 6,612
Job 11-104 12,760
Job 11-105 18,270
Factory supervision 12,500
Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $23 per direct labor hour. The direct labor rate is $29 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
Feedback

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 June. If an amount box does not require an entry, leave it blank.

Work in Process
Factory Overhead

Respuesta :

Answer and Explanation:

The journal entries are shown below:

a.

Work in process inventory ($4,640 + $5,510 + $6,612 + $12,760 + $18,270) $47,792

Factory Overhead $12,500  

       Factory Wages $60,292

(being the factory labor cost is recorded)

b.

Work in process inventory  ($47,792 ÷ 29 × 23) $37,904

         To Factory Overhead $37,904

(being the factory overhead applied to production is recorded)

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