Answer:
a. Debit Work-in- Progress with $200,000, and credit factory payroll payable with $200,000.
b. Debit factory overhead with $11,500, and credit factory payroll payable with $11,500.
c. Debit factory payroll payable with $211,500, and credit Cash with $211,500.
Explanation:
This will appear as follows in the account:
Hotwax's Journal Entries
<u>Details Dr ($) Cr ($) </u>
Work-in- Progress 200,000
Factory payroll payable 200,000
<u><em>Being direct labor cost incurred </em></u>
Factory overhead 11,500
Factory payroll payable 11,500
<u><em>Being the indirect labor cost incurred </em></u>
Factory payroll payable 211,500
Cash 211,500
<u><em>Being total factory payroll or labor cost paid in cash </em></u>
