Fairfield Company’s payroll costs for the most recent month are summarized here:

Question

Fairfield Company’s payroll costs for the most recent month are summarized here:

1. Calculate how much of the labor costs would be added to the following accounts:

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Item Description Total Cost Hourly labor wages 810 hours @ $23 per hour 230 hours for Job 101 = $ 5,290 330 hours for Job 102 = 7,590 250 hours for Job 103 = 5,750 $ 18,630 Factory supervision 5,050 Production engineer 6,900 Factory janitorial work 1,200 Selling, general, and administrative salaries 8,100 Total payroll costs $ 39,880

Explanation / Answer

a Work in Process Inventory = $18630 b Manufacturing Overhead = 5050+6900+1200= 13150 c Selling, General, and Administrative Expenses = $8100

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