 Is being used to create this trial balance number and we're out of balance by the four thousand two hundred Then we'll record the other side of this which is wages payable That's going to be our only liability account. There's a pretty simplified trial balance, but there's our wages payable We're going to scroll over to wages payable. It's going to be a credit. So here's wages payable We're going to be in the credit side of an x 19 so within x 19 Equals I'm going to go all the way to the left until I find it wages payable the last journal entry 4,200 and enter So there it is wages payable 4,200 this number then being used to create wages payable here and we're back in balance So our journal entries back in balance and has been recorded here Okay, so there's our process now Once again, we did something to work in process and whenever we do that We need to support this not only with the GL as we have here But this only gives us the detail by date We need to break it out by job and remember it's similar to like the accounts receivable being broken out Not only by date, but by customer who owes us the money Work and process needs to be broken out not only by date on the GL But by job which job are we applying these costs to? So if we do that That's where we're going to need this separate breakout here in the sub account So I'm going to go ahead and copy this and we'll bring it over. I'm going to go all the way to the right to where our jobs are So here's our jobs over here And I'll paste this down here Okay, so so now we're just going to apply this out that 4,200 is broken out job B 15 We're in B 15 direct labor and we're going to say this was 1200 and then B 16 900 here's B 16 direct labor 900 and then we're going to say B 17 560 B 17 560 and Then B 18 850 B 18 850 and And finally B 19 690 so we're going to go over here to B 19 and Say 690 Now if we add up our total jobs, they add up to direct materials direct labor These two add up to 1002 30 being summed up across being summed up vertically Here's our total 1002 30. That's the case for all jobs if we add up all of them. They're all open All these jobs you can do it this way all these jobs Add up to this amount that should be equivalent to what's on the trial balance and GL so We can see over here. We noted that this work in process was used to create this number and This number should be supported by this number and by the Work in process the jobs and and it is so we look good there The last piece of this then It's we're going to record this amount This is the indirect labor and that's gonna be anything in the factory that we couldn't apply to a job So if we have like supervisor salaries or something like that We don't know which job they actually worked on if any So they're they're working on multiple jobs. So we have to basically apply their salary To those jobs if it's a maintenance or something in there We we might need if it's anything that's in the Factory where we make things if we're making guitars and whatnot. We need to be able to apply Those salaries out to the jobs. So that's going to be the indirect labor here So it's still going to be wages payable because we're processing payroll But the debit now not going to work in process because we don't know which job it's going to it's going to go To the bucket which is factory overhead So we'll right-click and copy factory overhead. We'll put that in B 13 right-click and paste one two three and Then the amount is going to be one thousand two hundred We'll credit something run one thousand two hundred as well I'm gonna do that with a little like negative of that number That's like negative some plug formula. You could put just the negative one thousand two hundred That's fine too, but and then that's going to go to wages payable again It's kind of like processing payroll like we could have said paid cash. We're not dealing with any of the withholdings here We're just having a simplified payroll journal entry rather than deputing Expense however, it's going to an asset account an inventory account in this case overhead Until we we figure out a way to apply that overhead to a job So we're going to right-click on wages payable. We'll put that in B 14 right-click and paste one two three and There we have it now. Let's record this one. We're going to post it to the general ledger. Here's factory overhead Here's factory overhead. It's like the third to last asset account same order on the GL So factory overhead is down here. So it's right there in s 26 so within s 26, I'm going to say equals go left I'm going to find that last account. There it is factory overhead and pick up that C 13 enter So within as 26 it equals C 13 Bring in the 550 previously in there up by one thousand two hundred two one thousand seven fifty that One thousand seven fifty then is being used to create the trial balance We're out of balance by one thousand two hundred until we record the other side. So here's the other side Wages payable. It's our only liability account, which is nice and this nice small trial balance So we're going to go find wages payable. There it is. It's going to be in the credit side again. I'm in x 20 x 20 I'm going to say equals and then we'll scroll left and find that that account so we're scrolling left wages payable We'll pick that up in D14 and enter So here's wages payable equals D14 It was at a credit of four thousand two hundred it goes up in the credit direction one thousand two hundred two five thousand four hundred that then is used to create The trial balance and the trial balance is back in balance and debits equal in the credits debits minus the credits equals zero Still no effect on net income Here and again, even though we kind of paid wages and you might and are thinking if we thought about companies other than Manufacturing companies is probably that there should be an expense related to wages expense, but no It's there's not an expense because that was part of inventory anything that we had to pay for in order to Conform or convert the raw materials to inventory is not an expense until we sell the inventory It's part of the cost of inventory