Question

Ruiz Engineering Contractors Incurred service salaries and wages of $41,800 ($34,400 direct and $7,400 indirect) on an engineering project. The company applies overhead at a rate of 22% of direct labor.

Record the entries to assign service salaries and wages and to apply overhead.

m/courses/4920/assignments/79895?module_item_id-190679 Question 1 View Policies Current Attempt in Progress Ruiz Engineering Contractors incurred service salaries and wages of $41,800 ($34,400 direct and $7.400 indirect) on an engineering project. The company applies overhead at a rate of 22% of direct labor. Record the entries to assign service salaries and wages and to apply overhead. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record service salary and wages) (To record the applied overhead)

Answer 1

Solution:

Journal Entries - Ruiz
Event	Particulars	Debit	Credit
1	Work in process Dr	$34,400.00
	Factory overhead Dr	$7,400.00
	To Wages payable		$41,800.00
	(To record service wages and salaries)
2	Work In Process Dr ($34,400*22%)	$7,568.00
	To Factory overhead		$7,568.00
	(To record overhead applied)