Answer:
1.Dr Work in progress inventory75,000
Dr Payable Factory payroll 75,000
2. Dr Factory overhead 20,000
Cr Factory Payroll Payable 20,000
3. Dr Factory wages payable 95,000
(75,000+20,000)
Cr Cash 95,000
Explanation:
Preparation to record Journal entry
1. Since the amount of $75,000 was been Incurred of the direct labour production this means we have to record the transaction as :
Dr Work in progress inventory75,000
Dr Payable Factory payroll 75,000
2. Since the amount of $20,000 was Incurred of indirect labor in production this means we have to record the transaction as:
Dr Factory overhead 20,000
Cr Factory Payroll Payable 20,000
3. Since factory payroll was paid the transaction will be recorded as :
Dr Factory wages payable 95,000
(75,000+20,000)
Cr Cash 95,000
