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leonid [27]
3 years ago
7

Wilturner Company incurs $88,000 of labor related directly to the product in the Assembly Department, $37,000 of labor related t

o the Assembly Department as a whole, and $24,000 of labor for services that help production in both the Assembly and Finishing departments. The journal entries to record the labor for the Assembly Department would include:
Business
1 answer:
Kazeer [188]3 years ago
4 0

Answer:

Explanation:

The journal entry that would include is shown below:

Work in Progress inventory A/c Dr           $125,000

Factory overhead A/c   Dr                         $24,000

(Being labor cost is recorded)

The computation is shown below:

Work in progress = Labor expenses + whole labor expenses

                             =$88,000 + $37,000

                             = $125,000

The labor expenses are directly related to the product which means it is a direct cost

And, the whole labor expense is considered to be the overhead cost as it is not directly related to the product

And, the $24,000 is also considered as an overhead cost because it is used in both the departments so it is come under the factory overhead account

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