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The gross earnings of the factory workers for Larkin Company during the month of January are $90,000. Of the total accumulated cost of factory labor,

The gross earnings of the factory workers for Larkin Company during the month of January are $90,000.
Of the total accumulated cost of factory labor, 85% is related to direct labor and 15% is attributable to indirect labor.
Instructions
(a) Record the factory labor costs for the month of January.
(b) Assign the factory labor to production.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .
(a) and (b) Record the factory labor costs for the month of January.
Manufacturing Costs Work in Process Inventory
Raw Materials Inventory Factory Labor Manufacturing Overhead
(a) Incurred factory labor Value
(b) Direct labor ? ?
(b) Indirect labor ? ?
Balances Value Value Value
After you have completed E12-1, consider the following additional question.
Assume that factory wages changed changed to $78,000.
Also assume that 80% of total labor costs is related to direct labor. Revise the assignment
of factory labor to production.

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