Entries for Direct Labor and Factory Overhead Townsend Industries Inc. manufactu
ID: 2331966 • Letter: E
Question
Entries for Direct Labor and Factory Overhead
Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from November jobs are summarized as follows:
Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $20 per direct labor hour. The direct labor rate is $18 per hour.
If required, round final answers to the nearest dollar.
a. Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.
b. Journalize the entry to apply factory overhead to production for November.
Job 11-101 $6,090 Job 11-102 3,040 Job 11-103 2,400 Job 11-104 4,490 Factory supervision 2,080Explanation / Answer
a Work in Process 16020 =6090+3040+2400+4490 Factory Overhead 2080 Wages Payable 18100 b Work in Process 17800 =(16020/18)*20 Factory Overhead 17800
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