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:

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 $17 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.

Feedback

b. Journalize the entry to apply factory overhead to production for November.

Job 201 $5,620 Job 202 2,810 Job 203 2,220 Job 204 4,140 Factory supervision 1,920

Explanation / Answer

Journal entry :

D

Date accounts & explanation debit credit Work in process 14790 Factory overhead 1920     Wages payable 16710 (TO record labour) Work in process (14790/17*20) 17400     Factory overhead 17400 (To record apply factory overhead)

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