Question

Recording Factory Labor Costs A summary of the time tickets for January is as follows: Job No 3467 3470 3471 Amount Job No.Amount 3478 3480 3497 3501 $6,829 3,438 11,273 21,352 $9,106 9,891 12,638 17,474 Indirect labor
a. Determine the amounts of factory labor costs transferred to Work in Process and Factory Overhead for January
b. Illustrate the effect on the accounts and financial statements of the factory labor costs transferred in.

Answer 1

Answer:

Work in process = $70649

Factory overhead = 21,352

Explanation:

A.

Factory labor cost transferred to Work in process is the sum of all direct labor cost incurred

Factory labor cost transferred to Factory Overhead is the sum of all indirect labor cost incurred

Work in Process = $6,829 + $3,438 + $11,273 + $9,106 + $9,891 + $12,638 + $17,474

Work in process = $70649

Factory overhead = 21,352

B.

Balance sheet

Assets                                   = liabilities    +        Capital

$70649 + $21,352                =  92,001           No Effect

Statement of cashflow = No Effect

Income statement = No Effect