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22 May, 14:39

Penn Company uses a job order cost accounting system. In the last month, the system accumulated labor time tickets totaling $33,500 for direct labor and $6,700 for indirect labor. These costs were accumulated in Factory Payroll as they were paid. Which entry should Penn make to assign the Factory Payroll

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  1. 22 May, 14:52
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    The entry should Penn make would be as follows:

    Debit Credit

    Goods in process inventory $33,500

    factory overhead $6,700

    Factory Payroll $40,200

    Explanation:

    To make the preparation of the entry should Penn make to assign the Factory Payroll we would have to calculate the factory payroll as follow:

    Factory Payroll=Goods in process inventory+factory overhead

    Factory Payroll=$33,500+$6,700

    Factory Payroll=$40,200

    Therefore, the entry should Penn make would be as follows:

    Debit Credit

    Goods in process inventory $33,500

    factory overhead $6,700

    Factory Payroll $40,200
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