M2-16 (Algo) Preparing Journal Entries [LO 2-S1) Fairfield Company's payroll costs for the most recent month are summarized here: Total Cost Item Description Hourly labor wages 790 hours @ $25 per hour 170 hours for Job 101 = 300 hours for Job 102 = 320 hours for Job 103 = Factory supervision Production engineer Factory janitorial work Selling, general, and administrative salaries Total payroll costs $ 4,250 7,500 8,000_$19,750 4,050 6,500 1,900 10,000 $ 42,200 1. & 2. Prepare the journal entries for payroll and to apply manufacturing overhead to production. The company applies manufacturing overhead to products at a predetermined rate of $50 per direct labor hour. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record Fairfield Company's payroll costs to be paid at a later date. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal Journal entry worksheet Record the application of manufacturing overhead to production at a predetermined rate of $50 per direct labor hour. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 Record entry Clear entry View general journal