Question

Wilturner Company incurs $90,000 of labor related directly to the product in the Assembly Department, $39,000 of labor related to the Assembly Department as a whole, and $$26,000 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:

Wilturner Company

The journal entries to record the labor for the Assembly Department would include:

Debit Work in Process $155,000

Credit Direct labor $90,000

Credit Variable factory overhead $39,000

Credit Fixed factory overhead $26,000

To record the direct and indirect labor costs of the assembly department.

Explanation:

a) Data and Analysis:

Direct labor $90,000

Variable overhead (labor) $39,000

Fixed overhead (labor) $26,000

b) The direct labor cost = $90,000 and Factory overhead costs = $65,000 ($39,000 + $26,000)