E$3\mathrm{.}17()$ Total factory labour costs related to factory workers for Vargas Company

during the month of January are $$80,000.$ Of the total accumulated cost of factory labour,

$85\%$ is related to direct labour and $15\%$ is attributable to indirect labour.

Instructions

a$.$ Prepare the January $31$ entry to record the factory labour costs for January.

b$.$ Prepare the January $31$ entry to assign factory labour to production.