Question

Question 1 of 3 View Policies Current Attempt in Progress The gross earnings of the factory workers for Vargas Company during the month of taxes for the factory payroll are $7.700. The fringe benefits to be paid by the employer on this accumulated cost of factory labour, 84% is related to direct labour and 16is attributable to directe Prepare the entry to record the factory Labour costs for January Prepare the entry to assign factory labour to production Credit account titles are automatically indented when amount is entered. Do not indent manually Debit No. Account Titles and Explanation (b)

Answer 1

Credit a. $ $ No Account Title Debit Factory labour $ 1,01,800 Factory wages payable Employer payroll taxes payable Employer fringe benefits payable b. Work in process Inventory $ 85,512 Manufactuirng overhead $ 16,288 Factory labour 91,000 7,700 3,100 $ 101800*84% 101800*16% $ 1,01,800