1.
If Department G uses $53,000 of direct labor and Department H uses $21,000 of direct labor, the
following journal entry would be recorded using a process cost accounting system
true or false
Solution
Ans
True
The scheme of entries would be
From the Factory Payroll Reports
Account Head & Titles Debit Credit
Factory Payroll 74,000.00
Wages Payable xxx
Social Security Tax Payable xxx
Allocation to the Jobs
Goods In Process
Inventory,Department G
53,000.00
Goods In Process
Inventory,Department H
21,000.00
Factrory Payroll 74,000.00