The gross earnings of factory workers for Javelin
by | Mar 18, 2020 | Uncategorized
The gross earnings of factory workers for Javelin Manufacturing Company during the month of January are $300,000. The employer’s payroll taxes for the factory payroll are $36,000. Of the total accumulated cost of factory labor, 75% is related to direct labor and 25% is attributable to indirect labor.
(a) Prepare the entry to record the factory labor costs for the month of January.
(b) Prepare the entry to assign factory labor to production.
(c) Prepare the entry to assign manufacturing overhead to production, assuming the predetermined overhead rate is 125% of direct labor cost.
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