. A summary of the time tickets for August follows: Description Amount Description Amount Job No. 321 $11,000 Job No. 342 $8,300 Job No. 329 9,200 Job No. 346 5,700 Job No. 336 5,000 Indirect labor 8,000 Present the journal entries to record (a) the labor cost incurred and (b) the application of factory overhead to production for August. The factory overhead rate is 70% of direct labor cost. cengage

(a) The labor cost incurred  

                                                        Overhead applied

Job No. 321 $11,000                    11000* 70% = 7,700

Job No. 342 $8,300                     $8,300*70% = 5,810

Job No. 329 9,200                       9,200*70% = 6440

Job No. 346 5,700                       5,700  *70% = 3,990

Job No. 336 5,000                        5,000*70% = 3,500

Total Direct Labor  $ 39,200  Total FOH applied   $ 27,440

The journal entry made to record these costs is as follows

Work in Process Inventory       $ 39,200 Dr.

Wages Payable                      $ 39,200Cr.

Indirect labor 8,000  not charges to any job  is recorded as follows

Manufacturing Overhead    $ 8000 Dr.

Wages Payable   $ 8000 Cr.

Usually these are combined as a single entry

Work in Process Inventory       $ 39,200 Dr.

Manufacturing Overhead    $ 8000 Dr.

Wages Payable   $ 47,200 Cr.

(b) the application of factory overhead to production for August. The factory

Work In Process    $ 27,440   Dr

Manufacturing Overhead     $ 27,440  Cr.