Sweeten Company had no jobs in progress at the beginning of March and no beginni

Question

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March-Job P and Job Q. Job P was completed and sold by the end of the March and Job Q was incomplete at the end of the March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March): Required: Assume that the company does not use any indirect labor. Prepare the journal entry to record the direct labor costs added to production.

Explanation / Answer

Answer: Work in Process A/C Dr. $28500

                    To Wages Payable A/C                 $28500

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