Entries for Direct Labor and Factory Overhead Townsend Industries Inc. manufactu

Question

Entries for Direct Labor and Factory Overhead Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from November jobs are summarized as follows: Job 201 Job 202 ob 203 Job 204 Factory supervision Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $20 per direct labor hour. The direct labor rate is $18 per hour. If required, round final answers to the nearest dollar. a. Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank. $6,570 3,280 2,590 4,840 2,250 b. Journalize the entry to apply factory overhead to production for November.

Explanation / Answer

Journal entry :

No Accounts & explanation debit credit a Work in process 17280 Manufacturing overhead 2250      Wages payable 19530 (To record wages) b Work in process (17280/18*20) 19200     Manufacturing overhead 19200 (To record applied overhead)

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