Question

Wilturner Company incurs $83,000 of labor related directly to the product in the Assembly Department, $32,000 of labor related to the Assembly Department as a whole, and $19,000 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:

Answer 1

Answer:

Work in process inventory ($83,000 + $32,000) $115,000

Factory overhead $19,000

            To wages payable  $134,000

(Being the labor is recorded)

Explanation:

The journal entry is shown below:

Work in process inventory ($83,000 + $32,000) $115,000

Factory overhead $19,000

            To wages payable  $134,000

(Being the labor is recorded)

For recording this we debited the work in process inventory and factory overhead and credited the wages payable so that the correct posting could be done