Answer:
WIP Forming 3,400 debit
WIP Assembly 2,560 debit
Factory Overhead 800 debit
wages payable 6,760
to record assignment of labor to cost
Explanation:
The labor cost of each department will increase the deparment work in process. Once the producion or jobs are finished it will be capitalized through finished goods inventory.
The indirect labor cost are actual factory overhead. Later on, it will be compared with the applied overhead and checked for over or underapplication of the overhead.
On the credit side, in the case the wages are not paid, we will use wages payable.
If the wages has been paid, we will use cash.
