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	$2,870
Job 202	1,440
Job 203	1,130
Job 204	2,120
Factory supervision	980

Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $24 per direct labor hour. The direct labor rate is $14 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.

	Work in Process
	Factory Overhead
	Wages Payable

Feedback

a. Increase the work in process for the direct labor and factory overhead for the indirect labor.

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

	Work in Process
	Factory Overhead