Question

Entries for Direct Labor and Factory Overhead

Schumacher Industries Inc. manufactures recreational vehicles. Schumacher Industries uses a job order cost system. The time tickets from June jobs are summarized as follows:

Job 11-101	$4,640
Job 11-102	5,510
Job 11-103	6,612
Job 11-104	12,760
Job 11-105	18,270
Factory supervision	12,500

Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $23 per direct labor hour. The direct labor rate is $29 per hour.

a. Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.

	Work in Process
	Factory Overhead
	Wages Payable

Feedback

a.Increase the work in process for the direct labor and factory overhead for the indirect labor.

b. Journalize the entry to apply factory overhead to production for June. If an amount box does not require an entry, leave it blank.

	Work in Process
	Factory Overhead

Answer 1

a
Work in Process	47792		=4640+5510+6612+12760+18270
Factory Overhead	12500
Wages Payable		60292
b
Work in Process	37904
Factory Overhead		37904
Workings:
Total direct labor cost	47792
Divide by Direct labor rate	29
Direct labor hours	1648
X Predetermined overhead rate	23
Factory overhead applied	37904