Prepare journal entries to record the following production activities. 1. Incurred $59,000 of direct labor in production (credit
Factory Payroll Payable). 2. Incurred $22,000 of indirect labor in production (credit Factory Payroll Payable). 3. Paid factory payroll.
1 answer:
Answer: The answer has been solved and attached
Explanation:
The work in progress and inventory is the inventory that has almost finished by a company and waiting so was to be changed to finished goods. We are told that direct labour is used, therefore we will have to debit work in progress inventory by $59,000 and credit payable factory payroll by $59,000.
Factory overhead are expenses that a company makes. We have to debit it by $22,000 and credit payable factory payroll by $22,000.
The solution has been attached.
You might be interested in