Recording Direct and Indirect Labor Costs
Kelly Company’s payroll costs for the most recent month are summarized here:
Item | Description |
| Total Cost |
Hourly labor wages | 750 hours @ $25 per hour |
|
|
| 200 hours for Job 101 = | $5,000 |
|
| 300 hours for Job 102 = | 7,500 |
|
| 250 hours for Job 103 = | 6,250 | $18,750 |
Factory supervision |
|
| 4,250 |
Production engineer |
|
| 6,000 |
Factory janitorial work |
|
| 2,000 |
General and administrative salaries |
|
| 8,000 |
Total payroll costs |
|
| $39,000 |
1.Calculate how much of the labor costs would be added to the following accounts:
Work in Process Inventory
Manufacturing Overhead
Selling and Administrative Expenses
2. Explain why some labor costs are recorded as work in process, some as manufacturing overhead, and some as period costs.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.