Question

Fairfield Company’s payroll costs for the most recent month are summarized here:

Item	Description			Total Cost
Hourly labor wages	760 hours @ $32 per hour
	160 hours for Job 101 =	$	5,120
	310 hours for Job 102 =		9,920
	290 hours for Job 103 =		9,280	$	24,320
Factory supervision					3,650
Production engineer					6,100
Factory janitorial work					1,000
Selling, general, and administrative salaries					8,000
Total payroll costs				$	43,070

1. & 2. Prepare the journal entries for payroll and to apply manufacturing overhead to production. The company applies manufacturing overhead to products at a predetermined rate of $64 per direct labor hour. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Sowtion work in 1. porocese Jnventory 24320 overhead Maruyactorng 3u50+6100+1000] 10750 Selling gereral and administeative - Salanies experser' 8000 43070 Salaory and cooges payable wosk in proces Invertory C 760X 64] Maryactoring ovenhead 48 640 48640