Prepare journal entries to record the following production activities. 1. Incurred $59,000 of direct labor in production (credit Factory Payroll Payable). 2. Incurred $22,000 of indirect labor in production (credit Factory Payroll Payable). 3. Paid factory payroll.

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Explanation:

The work in progress and inventory is the inventory that has almost finished by a company and waiting so was to be changed to finished goods. We are told that direct labour is used, therefore we will have to debit work in progress inventory by $59,000 and credit payable factory payroll by $59,000.

Factory overhead are expenses that a company makes. We have to debit it by $22,000 and credit payable factory payroll by $22,000.

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