Question

Entry for Factory Labor Costs

A summary of the time tickets is as follows:

Job No.	Amount
100	$2,240
101	1,860
104	3,400
108	3,900
Indirect	11,940
111	2,380
115	1,560
117	10,570

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

Answer 1

In Job Costing, Labour cost directly associated with job would directly debited to "Work In Progress" Account.

And Indirect Labour cost would be debited to Factory Overhead. After allocation of overhead between jobs, amount will be transfer to "Work in Progress" Account.

Hence, here

Job No.	Amount ($)	Account
100	2,240	Work in Progress
101	1,860	Work in Progress
104	3,400	Work in Progress
108	3,900	Work in Progress
Indirect	11,940	Factory Overhead
111	2,380	Work in Progress
115	1,560	Work in Progress
117	10,570	Work in Progress
	37,850
Total
Work in Progress		25,910
Factory Overhead		11,940

Work in Progress Dr. 25,910

Factory Overhead Dr 11,940

   To Wages Payable    37,850

(Being entry passed for wages payable)