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const2013 [10]
3 years ago
9

"The gross earnings of factory workers for Dinkel Company during the month of January are $400,000. The employer's payroll taxes

for the factory payroll are $80,000. Of the total accumulated cost of factory labor, 75% is related to direct labor and 25% is attributable to indirect labor. Prepare the entry to record the factory labor costs for the month of January"
Business
1 answer:
Zepler [3.9K]3 years ago
3 0

Answer and Explanation:

The Journal entry is shown below:-

Factory labor Dr, $480,000

        To Factory wages payable $400,000

        To Employee payroll taxes payable $80,000

(Being factory labor cost is recorded)

Here we debited the factory labor as it increased the expenses and we credited the factory wages payable and employee payroll taxes payable as it also increased the liabilities

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