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.

Explanation:

The journal entries are as follows

a. Work in process $39,200

   Factory overhead $8,000

              To Wages payable $47,200

(Being the labor cost incurred is recorded)

The computation is shown below:

= $11,000 + $8,300 + $9,200 + $5,700 + $5,000

= $39,200

b. Work in process

           To Factory overhead

(Being the factory overhead is recorded)

It is computed below:

= $39,200 × 70%

= $27,440

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