$115,000. Compute the amount of manufacturing overhead applied during the month. (Lo 6), AN Determine the amount of under or overapplied manufacturing overhead. The Navigat EXERCISES E2-1 The gross earnings of the factory workers for Vargas company during the month of Prepare entries for fa January are $66,000. The employer's payroll taxes for the factory payroll are $8,000. The labor. fringe benefits to be paid by the employer on this payroll are $6,000. Of the total accumulated (LO 2, 3), AP cost of factory labor, 85% is related to direct labor and 15% is attributable to indirect labor. Instructions
(a) Prepare the entry to record the factory labor costs for the month of January.
(b) Prepare the entry to assign factory labor to production.
E2-2 Stine Company uses a job order cost system. On May 1, the company has a balance in Prepare journal er Work in Process Inventory of $3,500 and two jobs in process: Job No. 429 $2,000, and Job manufacturing co (LO 2, 3, 4, 5), AP No. 430 $1,500. During May, a summary of source documents reveals the following Materials Labor Time Tickets Job Number Requisition Slips $1,900 429 $2,500 3,500 3,000 430 431 4,400 $10,400 7,600 $12,500 800 1,200 General use $13,700 $11,200