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Wilturner Company incurs $82,000 of labor related directly to the product in the Assembly Department, $31,000 of labor related to the Assembly Department as a whole, and $18,000 of labor for services that help production in both the Assembly and Finishing departments. The journal entries to record the labor for the Assembly Department would include:

Respuesta :

Capricious23

Answer:

Debit Work in Process Inventory $113,000;

Debit Factory Overhead $18,000.

Explanation:

$82,000 of direct labor related is associated with assembly department.

and $31,000 of labor not directly related to the product but related to the Assembly Department as a whole . Therefore its a indirect cost means overhead

$18,000 of labor services this cost is not associated with the product, but indirectly incurred in making material to the final product. hence this cost is also part of indirect cost.

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