During the week ended November 30,total factory payroll incurred was $6,000.Of this total,80% was for direct labor.The entry to record the payroll distribution would include:

Question

Quizplus · Accepted Answer

Since 80% of the total factory payroll incurred was for direct labor, 80% of $6,000 is $4,800. Therefore, we would debit Work-in-Process Inventory for $4,800 (since direct labor is a component of the cost of goods manufactured) and we would debit Overhead-Control for $1,200 (since the remaining 20% of the payroll is for indirect labor, which is considered part of overhead).

During the Week Ended November 30,total Factory Payroll Incurred Was