Freiling Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
During the year, the company assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 14,890 hours at an average cost of $22.80 per hour.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.
-When the direct labor cost is recorded,which of the following entries will be made?
Definitions:
Foramen Magnum
A large opening in the base of the skull through which the spinal cord connects to the brain.
Foramen Ovale
An opening in the septum between the two atria of the heart in a fetus, allowing blood to bypass the lungs.
Optic Canal
A narrow passageway in the skull through which the optic nerve and ophthalmic artery pass to the eye.
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