Step-byStep explanation a. Journal entry for Direct and Indirect Materials used Janua 31 Debit ork in Process 70,900 Debit Fac. Overhead Control 7,800 Credit Materials. T8300 Facto overhead account is used for indirect materials and Work in Process for Direct materials used. he amount of materials to be credited should be equal to the amount put into the production. b. Journal entry for Direct and Indirect Labor used Janua 31 Debit ork in Process 53,200 Debit Fac. Overhead Control 11,100 Credit Wages Payable 64,300 Factory overhead account is used for indirect labor and Work in Process for Direct labor used. Wages payable is credited to the amount to be paid to the employees who work in the factory. c. Journal entry for Application of Factory Overhead based on Direct labor cost. .Innl Inn! 21