Question

Farrel Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Direct labor cost $574,000 Manufacturing overhead: Indirect labor cost $163,000 Other manufacturing overhead costs incurred $584,000 What is the journal entry to record the direct and indirect labor costs incurred during the year?

Answer 1

Answer:

      Cost                                     Debit             Credit  

Work in Process inventory        $574,000  

Manufacturing overhead           $163,000  

Wages payable/Cash                                      $737,000