D Chapter 2 HW ? ? Fairfield Company\'s payroll costs for the most recent month

Question

D Chapter 2 HW ? ? Fairfield Company's payroll costs for the most recent month are summarized here: Hourly labor wages 790 hours 8 $17 per hour 210 hours for Job 101 250 hours for Job 102 330 hours for Job 103 4,250 Factory ?4ervson Production engineer Factory janitorial work Selling, general, and administrative 5,610 $13,430 3,850 7.300 900 8100 Total payeoll coss 1. & 2.Prepare the joumal entries for payroll and to apply manufacturing overhead to production The company applies manufacturing overhead to products te of $34 per drect bor hour f no entry is reguired for a transasction/event, selet "No Journal Entry Reguired' in the frst account field.) Record Fairfield Company's payroll costs to be paid at a later date 1 Record the application of manufacturing overhead based on $34 per direct labor hour predetermined rate to 2 4

Explanation / Answer

JOURNAL ENTRIES

manufacturing overheads = factory supervision + production engineer + factory janitorial work

                                     = 3850 + 7300 + 1900

                                     = 13050

note: direct labor should be recoarded as work in progress. Indirect labour is treated as manufacturing overheads.

JOURNAL ENTRIES

work in pregress a/c dr (790*34)

TRANSACTION PARTICULARS LF DEBIT CREDIT 1 work in progress a/c dr 13430 manufacturing overheads a/c dr 13050 salaries expenses a/c dr 8100 to salaries and wages payable a/c 34580 (being payroll expenses are recorded)

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