Question

Prepare journal entries to record the following production activities. 1. Incurred $50,000 of direct labor in the Roasting department and $31,000 of direct labor in the Blending department of direct labor in production (credit Factory Wages Payable). 2. Incurred $20,000 of Indirect labor in production (credit Factory Wages Payable). 3. Paid factory payroll. View transaction list Journal entry worksheet 1 2 3 Record direct labor incurred, but not yet paid. Note: Enter debits before credits General Journal Debit Transaction 1 Credit

Answer 1

1. work in process inventory-blending __ Debit(31000)

    work in process inventory- roasting __Debit (50000)

        Factory wages payable __Credit (81000)

2. Factory Overhead __Debit (20000)

        Factory Wages payable__ Credit (20000)

3. Factory wages payable___Debit(101000)=add 81,000+20000

        Cash___ Credit(101000)

Answer 2

Credit No. Transaction Account titles and explanation 1 1 Work in Process Roasting Department Work in Process- Blending Department Factory Wages Payable (To record direct labor incurred, but not paid) Debit $ 50,000 $ 31,000 $ 81,000 2 2 $ 20,000 Factory Overhead Factory Wages Payable (To record indirect labor incurred, but not paid) $ 20,000 3 3 $101,000 $101,000 Factory Wages Payable Cash (To record payment of total factory payroll) [$81,000+20,000]

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