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During the current month a company that uses job order costing incurred a monthly factory payroll of $238,500. of this amount, $44,000 is classified as indirect labor and the remainder as direct. Prepare journal entries to record these transactions.

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Answer #1
Transaction General Journal Debit Credit
1 Work in process inventory $194,500
Factory wages payable $194,500
2 Factory overhead $44,000
Factory wages payable $44,000
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