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The gross earnings of the factory workers for Vargas Company during the month of January are $64,800. The employer’s payroll taxes for the factory payroll are $8,900. The fringe benefits to be paid by the employer on this payroll are $6,900. Of the total accumulated cost of factory labor, 80% is related to direct labor and 20% 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.

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