The gross earnings of the factory workers for Larkin Company during the month of January are $73,000. The employer's payroll taxes for the factory payroll are $9,200. The fringe benefits to be paid by the employer on this payroll are $6,200. Of the total accumulated cost of factory labor, 83% is related to direct labor and 17% 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.

Question

Adriana Mckee

Business

3 June, 00:12

The gross earnings of the factory workers for Larkin Company during the month of January are $73,000. The employer's payroll taxes for the factory payroll are $9,200. The fringe benefits to be paid by the employer on this payroll are $6,200. Of the total accumulated cost of factory labor, 83% is related to direct labor and 17% 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.

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Answers (1)

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Kylie Underwood · Answer 1

Factory Labor 88400

Factory wages 73000

employer payroll taxes 9200

employer fringe benefit 6200

Work In process 88400

Factory Labor 88400

Explanation:

Factory Labor 88400

Factory wages payable 73000

employer payroll taxes 9200

employer fringe benefit 6200

work in process inventory 73372

manufacturing overhead 15028