The following partially completed T-accounts summarize transactions for Faaberg Corporation during the year:

-The direct labor cost was:
A) $11,600
B) $19,900
C) $8,000
D) $11,000

Question

The following partially completed T-accounts summarize transactions for Faaberg Corporation during the year:
 
-The direct labor cost was:
A) $11,600 
B) $19,900 
C) $8,000 
D) $11,000

Quizplus · Accepted Answer

The key is to recognize that the 5,700 debit entry in the Work in Process account represents direct materials. The journal entry would have been:
 11ea7761_18f4_a316_81a5_21a85f2c660d_TB2580_00 The other debit entry in the Work in Process account in the amount of $7,800 is manufacturing overhead applied because there is a corresponding credit entry for the same amount in the account Manufacturing Overhead.
 11ea7761_18f4_ca27_81a5_314161c47359_TB2580_00

The Following Partially Completed T-Accounts Summarize Transactions for Faaberg Corporation