The gross earnings of the factory workers for Cerrato Company during t he month of January) are \($90,000\). The employer's payroll taxes for the factory payroll are \($9,000\). The fringe bene! its to be paid by the employer on this payroll are \($4,000\). Of the total ac- cumulated cost of factory labor. 85 r r is related to direct labor and 15c r is attributable to indirect labor.

Instructions

(a) Prepare the entry to record the factory labor costs for the month of January.

(b) Prepare the entry to assign factory labor to production.