# (Solved): Entries for Direct Labor and Factory Overhead Townsend industries Inc. manufactures recreational vehicles. Townsend uses a job order

Entries for Direct Labor and Factory Overhead Townsend industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from November jobs are summarized as follows: Factory overhead applied to jobs on the basic of a predetermined overhead rate of \$18 per direct labor hour. The direct labor rate is \$40 per hour. A. Journalize the entry to record the factory labor costs. If an amount box does not an entry, leave it blank. Journalize the entry to apply factory overhead to production for November.

 Answer a Journal Entry to record factor Labor costs for November Account Titles Debit Credit Work in process – Job 11-101 \$6,240 Work in process – Job 11-102 \$9,000 Work in process – Job 11-103 \$7,210 Work in process – Job 11-104 \$6,750 Factory Overheads \$4,000 Wages Payable \$33,200 Answer b Calculation of total labour hours (Labour cost / Labour rate per hour) Labour Cost Labour rate Labour Hours Work in process – Job 11-101 \$6,240 \$40 156 Work in process – Job 11-102 \$9,000 \$40 225 Work in process – Job 11-103 \$7,210 \$40 180.25 Work in process – Job 11-104 \$6,750 \$40 168.75 Calculation of application of factory overheads to jobs (Labour hours * overhead application rate) Labour Hours Overhead application rate Overhead applied Work in process – Job 11-101 156 \$18 \$2,808 Work in process – Job 11-102 225 \$18 \$4,050 Work in process – Job 11-103 180.25 \$18 \$3,245 Work in process – Job 11-104 168.75 \$18 \$3,038 Journal Entry to apply factory overheads to production for November Account Titles Debit Credit Work in process – Job 11-101 \$2,808 Work in process – Job 11-102 \$4,050 Work in process – Job 11-103 \$3,245 Work in process – Job 11-104 \$3,038 Factory Overheads \$13,140
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