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barxatty [35]
3 years ago
14

Travers Manufacturing incurred $106,000 of direct labor and $11,000 of indirect labor. The proper journal entry to record these

events would include a debit to Work in Process for:
Business
1 answer:
olya-2409 [2.1K]3 years ago
3 0

Answer:

$117,000

Explanation:

All costs incurred in manufacturing a product are recorded in the Work in Process Account. The Debit entry on this Account shows the increase in costs and the credit entry shows the transfer of goods to Finished Goods Inventory

So the Work In Process Account must be debited with the Total labor Cost incurred of $117,000 ($106,000 direct labor + $11,000 indirect labor)

Conclusion :

The proper journal entry to record these events would include a debit to Work in Process for $117,000

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<u>Determination of adjusting entry for Supplies used:</u>


In the given case it is given those Supplies on hand were $ 1,000 at the start of the year. At the end of the year, it was determined that $ 450 of supplies had been used. It means the adjustment is needed to make for the amount of supplies used $450.


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(Being adjustment made for Supplies used)


Hence the correct answer is:

b. Debit supplies expense, $ 450; credit supplies, $ 450






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