Homework SourseFairfield Companys payroll costs for the most recent month a
Fairfield Company’s payroll costs for the most recent month are summarized here:
1. & 2. Prepare the journal entries for payroll and to apply manufacturing overhead to production. The company applies manufacturing overhead to products at a predetermined rate of $30 per direct labor hour. (If no entry is required for a transaction/event, select \"No Journal Entry Required\" in the first account field.)
Journal entry worksheet
Record the application of manufacturing overhead based on $30 per direct labor hour predetermined rate to production.
Note: Enter debits before credits.
| Item | Description | Total Cost | |||
| Hourly labor wages | 790 hours @ $15 per hour | ||||
| 250 hours for Job 101 = | $ | 3,750 | |||
| 340 hours for Job 102 = | 5,100 | ||||
| 200 hours for Job 103 = | 3,000 | $ | 11,850 | ||
| Factory supervision | 5,250 | ||||
| Production engineer | 7,500 | ||||
| Factory janitorial work | 1,200 | ||||
| Selling, general, and administrative salaries | 8,300 | ||||
| Total payroll costs | $ | 34,100 | |||
Solution
[Overhead applied direct labor hours*predetermined overhead rate
790*30]
| Transaction | Account title | Debit | credit |
| 2 | Work in process | 23700 | |
| Manufacturing overhead | 23700 | ||
| [Overhead applied direct labor hours*predetermined overhead rate 790*30] |
