The following partially completed T-accounts summarize transactions for Farwest Corporation during the year: The direct labor cost was:
A)$8,000
B)$12,300
C)$12,600
D)$11,000

Question

The following partially completed T-accounts summarize transactions for Farwest Corporation during the year:       The direct labor cost was:
A)$8,000 
B)$12,300 
C)$12,600 
D)$11,000

Quizplus · Accepted Answer

The key is to recognize that the 7,400 debit entry in the Work in Process account represents direct materials.The journal entry would have been:
 11eaa3fe_33bb_af00_908b_3574bc7f33a4_TB2461_00 The other debit entry in the Work in Process account in the amount of $6,800 is manufacturing overhead applied because there is a corresponding credit entry for the same amount in the account Manufacturing Overhea

The Following Partially Completed T-Accounts Summarize Transactions for Farwest Corporation