Journalize the following transactions for Shelton, Inc (a) Incurred direct labor costs of $23,200 for 3,410 hours. The standard labor cost was $24,041. (b) Assigned 3,410 direct labor hours costing $23,200 to production. Standard hours were 3,580. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e. g. 125.) No. Account Titles and Explanation Debit Credit (a) (b)

Question

Clara Rice

Business

24 November, 13:29

Journalize the following transactions for Shelton, Inc (a) Incurred direct labor costs of $23,200 for 3,410 hours. The standard labor cost was $24,041. (b) Assigned 3,410 direct labor hours costing $23,200 to production. Standard hours were 3,580. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e. g. 125.) No. Account Titles and Explanation Debit Credit (a) (b)

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Answers (1)

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Gianna Gregory · Answer 1

Answer and Explanation:

As per the data given in the question,

The journal entries are shown below:

a)

Factory labor A/c Dr. $24,041

To Labor rate variance Cr. $841 ($24,041 - $23,200)

To Wages payable Cr. $23,200

(Being factor payroll is recorded)

b) Work in process inventory A/c Dr $25,240 (3,580 * $24,041 : 3,410)

To Labor efficiency variance Cr. $1,199 ($25,240 - $24,041)

To Factory labor $24,041

(Being assigning of payroll to work in process inventory is recorded))