Ruiz Engineering Contractors incurred service salaries and wages of $42,900 ($32,100 direct and $10,800 indirect) on an engineering project. The company applies overhead at a rate of 24% of direct labor. Record the entries to assign service salaries and wages and to apply overhead. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
(To record service salary and wages)
(To record the applied overhead)

accounts are

Accounts Payable Accounts Receivable Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Cash Cost of Completed Service Contracts Cost of Goods Sold Depreciation Expense Employer Fringe Benefits Payable Employer Payroll Taxes Payable Factory Labor Factory Wages Payable Finished Goods Inventory Manufacturing Overhead Operating Overhead Prepaid Property Taxes Raw Materials Inventory Salaries and Wages Payable Sales Revenue Service Contracts in Process Service Salaries and Wages Supplies Utilities Payable Work in Process Inventory