A summary of the time tickets for the current month follows: Job No. Amount
100 $ 3,860
101 4,300
104 24,500
108 18,600
Indirect 6,340
111 7,120
115 7,400
117 32,000
Journalize the entry on Dec. 31 to record the factory labor costs.

Entry is given below

Explanation:

Entry for factory labor cost

DATE          ACCOUNT                         DEBIT        CREDIT

DEC 31     Work in Progress(w)          $97,780

                Factory overhead              $6,340

                 Wages payable                                     $104,120

Working

Work in progress =  3,860+4,300+24,500+18,600+7120+7400+32,000

Work in progress = 97,780

NOTE: Work in progress is sum of all direct labor cost

Factory Overhead = all indirect labor cost which is only $6,130

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