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Aleonysh [2.5K]
3 years ago
8

EB11.

Business
1 answer:
Natasha2012 [34]3 years ago
3 0

Answer:

The journal entry to record the factory wages of $25,000 incurred in the processing department is given below.

Debit   Processing Department (WIP Asset)      $ 25,000

Credit  Factory Wage (Liability)                           $ 25,000

The journal entry to record the factory wages of $15,000 incurred in the production department.

Debit   Production Department (WIP Asset)      $ 15,000

Credit  Factory Wage (Liability)                           $ 15,000

Please note that these work in process are asset accounts and the cost of inventory is expenses as goods are sold.

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