Answer:
a.
Wages Expense $72,000 (debit)
Wages Payable $72,000 (credit)
b.
Work In Process : Direct Labor $60,480 (debit)
Work In Process : Direct Labor $11,520 (debit)
Wages Payable $72,000 (credit)
Explanation:
The factory labor cost is a manufacturing cost and is included in product valuation.
<u>(a)Record the factory labor costs</u>
Here we have to recognize the expense incurred during the period and the liability since settlement of amount owing to workers has not yet been made
Wages Expense $72,000 (debit)
Wages Payable $72,000 (credit)
<u>(b)Assign factory labor to production</u>
Here we accumulate the cost to the Work In Process of manufacture taking not of cost classification.
Work In Process : Direct Labor $60,480 (debit)
Work In Process : Direct Labor $11,520 (debit)
Wages Payable $72,000 (credit)
