Wage costs on employees


Problem: Chelsea Tool Corporation, a machine tool manufacturing company, incurred the following wage costs on employees during June, 2009:

Forklift operator in the factory $2,000
Plant supervisor $8,000
Marketing manager $6,000
Assemblers $4,000
Welders of manufactured machine $5,000

a. Dr. Manufacturing Overhead $25,000

Cr. Wages Payable $25,000

b. Dr. Manufacturing Overhead $19,000

Dr. Selling Expense $6,000
Cr. Wages Payable $25,000

c. Dr. Manufacturing Overhead $10,000

Dr. Work in Process Inventory $9,000
Dr. Selling Expense $6,000
Cr. Wages Payable $25,000

d Dr. Manufacturing Overhead $15,000

Dr. Work in Process Inventory $4,000
Dr. Selling Expense $6,000
Cr. Wages Payable $25,000

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Accounting Basics: Wage costs on employees
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