E20.1 (LO 1, 2), AP Total factory labor costs related to factory workers for Larkin Company during the month of January are $90,000. Of the total accumulated cost of factory labor, 85% is related to direct labor and 15% is attributable to indirect labor.

Instructions

Prepare the January 31 entry to record the factory labor costs for the month of January. Prepare the January 31 entry to assign factory labor to production. Prepare entries for manufacturing costs.