During January, time tickets show that the factory labor of $7,000 was used as follows: Job 1 $2,300, Job 2 $1,780, Job 3 $1,570, and general factory use $1,350.Prepare a summary journal entry to record factory labor used.

Question

30-01-2020
Business

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During January, time tickets show that the factory labor of $7,000 was used as follows: Job 1 $2,300, Job 2 $1,780, Job 3 $1,570, and general factory use $1,350.Prepare a summary journal entry to record factory labor used.

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khaqanelahi khaqanelahi · Answer 1 · 2020-02-02T12:53:23+01:00

Answer:

The direct labor cost is directly debited to work in process account of specific job and indirect labor cost is debited to factory overhead control account.

The summary journal entry to record factory labor used is given below.

Debit WIP JOB 1 $ 2,300

Debit WIP JOB 2 $ 1,780

Debit WIP JOB 3 $ 1,570

Debit Factory Overhead Control account $ 1,350

Credit Payrol account $ 7,000