Question

AutoSave OD 2 ExcelTemplateAssignment_Ch02 (1) . Protected View Excel Search File Home Insert Page Layout Formulas Data Review View Help DYMO Label QuickBooks O PROTECTED VIEW Be careful--files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing 110 x fc AA BC DE G 1 E2-1 Prepare entries for factory labor 2 The gross earnings of the factory workers for Larkin Company during the month of January are $76,000 3 The employer's payroll taxes for the factory payroll are $8,000. The fringe benefits to be paid by the employer 4 on this payroll are $6,000. Of the total accumulated cost of factory labor, 85% is related to direct labor and 5 15% is attributable to indirect labor. 6 7 Instructions 8 (a) Prepare the entry to record the factory labor costs for the month of January 9 (6) Prepare the entry to assign the factory labor to production. 10 NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". 12 13(a) Prepare the entry to record the factory labor costs for the month of January Value Account Account Account Account Value Value Value 21(b) Prepare the entry to assign the factory labor to production Account Account Account Value 29 After you have completed E2-1, consider the following additional question. 30 1. Assume that factory wages changed and employer's payroll taxes changed to $78,000 and $9,360 respectively. 31 Also assume that 80% of total labor costs is related to direct labor. Revise the journal entries to reflect these E2-1 E2.5 E2-9 | P23A P2-5A CD2

Answer 1

@ The for entry to record the the month of January factory labor costs. is as follows: Credit (8) L Account Ibebit (3) Factory Labor cost 90.000 to factery wages payable to employee payroll taxes To employer fringe benefit 76000 8000 6000 The entry to Production is assign the tactery as follows.. labour to 1 credit G Account Debito Warc in process inventary (90000X85) 76,500 manufacturing overhead (90,000x157 13, 5oo. To factory Labor cost 90,000