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 Fairfield Company\'s payroll costs to be paid at a later date.
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
Journal Entries :-
| Transaction | Particulars | Debit($) | Credit($) |
| 1 | Work in Process A/c Dr. | 11850 | |
| Manufacturing Overhead A/c Dr.($5250+$7500+$1200) | 13950 | ||
| Salaries Expense A/c Dr. | 8300 | ||
| To Salaries and wages payable a/c | 34100 | ||
| (To recored the Payroll costs) | |||
| 2 | Work in Process A/c Dr.(790*$30) | 23700 | |
| To Manufacturing overhead a/c | 23700 | ||
| (To record the application of manufacturing overhead) |
