The gross earnings of the factory workers for vargas company during the month of january are $66,000. the employer’s payroll taxes for the factory payroll are $8,000. the fringe benefits to be paid by the employer on this payroll are $6,000. of the total accumulated cost of factory labor, 85% is related to direct labor and 15% is attributable to indirect labor.(a) prepare the entry to record the factory labor costs for the month of january.(b) prepare the entry to assign factory labor to production.

(a) Debited all the loses and expenses and credited all the increased liability.

Factory Labor a/c        Dr.                      $80,000

 To Factory wages payable                                     $66,000

 To Employer payroll tax payable                            $8,000

 To Employer fringe benefits payable                     $6,000

(recording of factory labor costs)

(b) All increased assets and expenses and losses are debited and credited the increased liability.

Work in process Inventory a/c (85% of $80,000) Dr. $68,000

Manufacturing account a/c (15% of $80,000)       Dr. $12,000

To Factory Labor                                                                $80,000  

(recording of factory labor to production)  

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answer; ///i believe the correct answer is (c) laissez-faire;