Entries for Direct Labor and Factory Overhead Schumacher Industries Inc. manufactures recreational vehicles. Schumacher Industries uses a...

4.1 Ratings (841 Votes)

Journal Entry
	Account Titles	Debit	Credit
a)	Work in Process Inventory ($17,680 + $135,830)	$153,510
	Â Â Factory Overheads		$17,680
	Â Â Wages Payable		$135,830
	(To record the allocation of factory labor costs)

Journal Entry
	Account Titles	Debit	Credit
b)	Work in Process	$270,900
	Â Â Factory Overheads		$270,900
	(To record the application of factory overheads to jobs)

Working notes:
Direct labor costs:	Hours (a)	Rate (b)	*Total Cost (ab)**
Job 11-101	2,240	$17	$38,080
Job 11-101	1,520	$17	$25,840
Job 11-101	1,200	$17	$20,400
Job 11-101	1,830	$17	$31,110
Job 11-101	1,200	$17	$20,400
Total direct labor costs	$135,830

Factory supervison	1,040	$17	$17,680


Factory Overhead Costs	Hours (a)	Rate (b)	*Total Cost (ab)**
Job 11-101	2,240	$30	$67,200
Job 11-101	1,520	$30	$45,600
Job 11-101	1,200	$30	$36,000
Job 11-101	1,830	$30	$54,900
Job 11-101	1,200	$30	$36,000
Factory supervison	1,040	$30	$31,200
Total factory overheads applied	$270,900

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