Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The net earnings of the factory workers for Larkin Company during the month of January are $78,000. The employers payroll taxes for the factory payroll
The net earnings of the factory workers for Larkin Company during the month of January are $78,000. The employers payroll taxes for the factory payroll are $7,700. 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. (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.
Exercise 15-1 Your answer is partially correct. Try again The net earnings of the factory workers for Larkin Company during the month of January are $78,000. The employer's payroll taxes for the factory payroll are $7,700. 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 (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 (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation (a) Factory Labor Debit Credit 78,000 Factory Wages Payable 64,700 Employer Payroll Taxes Payable 7,700 Employer Fringe Benefits Payable 6,000 (b) work in Process Inventor 66,300 Manufacturing Overhead 11,700 Factory Labor 78,000 Click if you would like to Show Work for this question: en Show Wo
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started