please be as clear and as simple as possible. I am trying to understand it. show me the steps, not only the answers. thank you in advance.
E20-1, Prepare entries for factory labor The gross earnings of the factory workers for Sweet Company during the month of January are $44,000. The employer's payroll taxes for the factory payroll are $12,000. The fringe benefits to be paid by the employer on this payroll are $3,000. Of the total accumulated cost of factory labor, 75 % is related to direct labor and 25 % 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. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" E20-1 Solution Accounts XX Debit Credit (a) XX XX XX To record factory labor costs XX XX (b) XX To assign factory labor to production E20-9, Prepare a cost of goods manufactured schedule and partial financial statements. At May 31, 2014, the accounts of Mantle Company show the following. 1. May 1 inventories - finished goods $12,600, work in process $14,700, and raw materials $8,200. 2. May 31 inventories - finished goods $9,500, work in process $17,900, and raw materials $7,100. 3. Debit postings to work in process were direct materials $62,400, direct labor $50,000, and manufacturing overhead applied $40,000. 4. Sales revenue totaled $210,000. Instructions: (a) Prepare a condensed cost of goods manufactured schedule. (b) Prepare an income statement for May through gross profit. (c) Indicate the balance sheet presentation of the manufacturing inventories at May 31, 2014. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" (a) MANTLE COMPANY Cost of Goods Manufactured Schedule For the Month Ended May 31, 2014 Work In Process May 1st Direct Materials Used Direct Labor Manufacturing OH Total manufacturing costs value value value value ? Total cost of work in process Work In Process May 31 Less: value Cost of goods manufactured ? (b) MANTLE COMPANY (Partial) Income Statement For the Month Ended May 31, 2014 Sales revenues value Cost of Goods Sold Finish Goods Inventory, May 1 Cost of goods manufactured [per (a)] value Cost of goods available for sale Less: Finished goods inventory, 5/31/14 value Cost of goods sold ? Gross profit ? (c) MANTLE COMPANY (Partial) Balance Sheet May 31, 2014 Current Assets: Value account account Value account Value Total Manufacturing Inventories