Select your language

Suggested languages for you:
Log In Start studying!
Answers without the blur. Just sign up for free and you're in → Illustration


Horngren'S Financial And Managerial Accounting
Found in: Page 945

Short Answer

Question: Journalize the following transactions for Marge’s Sofas. Explanations are not required.

b. Incurred manufacturing wages of $15,000, 75% of which was direct labor and

25% of which was indirect labor.



Debit ($)

Credit ($)

Work-in-process inventory (75% of $15,000)


Manufacturing overhead (25% of $15,000)


Wages payable


See the step by step solution

Step by Step Solution

Step-by-Step Solution:Step 1: Wages payable

Wages payable is defined as the current liability of the company which shows the amount due to employees but not paid during the year.

Step 2: Recording of direct or indirect labor expenses in the books of the company

The labor wages incurred by the company is recorded in the books by debiting the direct labor cost as work in process, indirect labor cost as manufacturing overhead and crediting the wages payable account.

Recommended explanations on Business-studies Textbooks

94% of StudySmarter users get better grades.

Sign up for free
94% of StudySmarter users get better grades.