During the current month a company that uses job order costi

During the current month, a company that uses job order costing incurred a monthly factory payroll of $209,000. Of this amount, $43,000 is classified as indirect labor and the remainder as direct. Prepare journal entries to record these transactions.

Solution

General Journal Debit Credit Work in process inventory $166,000 Factory wages payable $166,000 Factory overhead $43,000 Factory wages payable $43,000