The gross earnings of the factory workers for VPN Company during the month of

January are $$66,000.$ The employer$$s payroll taxes for the factory payroll are $$8,000.$ The

fringe benefits to be paid by the employer on this payroll are $$6,000.$ Of the total accumulated

cost of factory labor, $85\%$ is related to direct labor and $15\%$ 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.