 That's what we have in payroll for for these individuals then we're breaking it out between these jobs That we paid for and this much is indirect that we couldn't apply to a particular job So we're processing this now with a journal entry just like we would with payroll meaning we're going to credit We're gonna say wages payable in a simplified journal entry. It might be a credit to cash, right? Or but wages payable will show us that it's for wages because we're processing payroll And then the debit usually we would think well, it's payroll. It's gonna go to it's gonna go to wages expense And again, we're not getting we're not getting into the withholdings and everything right now. That's a simplified Payroll journal entry and we're just gonna say well the debit would normally go to payroll expense But now we're gonna say no it's gonna go to work in process Why is it gonna go to work in process and not payroll expense when we're basically recording the payment of of employees Because the expense isn't there just because it's payroll at the time we pay them It's an expense because we used that work that work in order usually to help us generate revenue in the same time period The matching principle here. We use this labor not in order to help us generate revenue yet It helped us to make inventory which is work in process. It's part of the inventory So the labor the wages that we're paying as part of inventory We will expense it when we're gonna expense it when we sell the inventory in the form of cost of goods sold Then the other side, this is gonna be the labor that wasn't Applied to a job meaning like supervisor salaries or possibly Maintenance in the in the warehouse. We couldn't apply it to a job So it just is gonna go to indirect so it's gonna go we're still gonna go wages payable because we're gonna pay these people and And so it's gonna eventually go to cash that you can think of that as cash We're gonna pay them as well It's gonna go out of payable and then in the cash eventually and then the debit's gonna go to factory overhead So it's gonna go to factory overhead again It's not gonna go to wages expense because we haven't used it It's gonna go to inventory eventually and we're gonna have to apply it out from factory overhead to inventory in some way So if we look posting the journal entry to the general ledger, we've got the work in process here So we've got the work in process was at two thousand two hundred and thirty It's gonna go up by the four thousand two hundred two six thousand four hundred and thirty that then is what we have here six thousand four hundred and thirty wages payable. So here's wages payable was at zero It's gonna go up by four thousand two hundred and again, you can think about it as if we were paying cash, right? So wages payable is just gonna be an intermediary if this was a very simplified transaction I would just be a debit to the work in process credit To cash and that would be similar to us again. Just processing the payroll. We're not dealing with anything else like the withholdings or anything We're just looking at a very basic kind of payroll journal entry The main thing to note, however, of course is that the expense here is not going to an expense It's going to that inventory account We also note that book problems will often use a payable account when working of these types of systems because what they're trying to do Is show us just with the journal entry without having to have a note in the journal entry That what this is related to and if we just debit work in process and credit Cash then just by looking at the journal entry. We wouldn't really know what's happening So we use the payable now payable is fairly often used but we might see it in some other areas where it's less You know you something like utilities We might see a utilities payable or something like that because that helps us to know that the part that's going into work in process is related to utilities in that case and Usually we wouldn't have a utilities payable because we would just pay the utilities. It would be a credit to cash We might do it with a note. So just be aware of that. So we're just processing the payroll here Wages payable then we have the factory overhead 1,200 200 was that 550 we're going to debit it 1200 to 4,750 that's the amount in factory overhead and then we've got the wages payable again Which was that 4,200 we're going to credit the 1,200 to 5,400 So now we have wages payable, which we will pay soon when we do so We will debit this making it go down to zero and credit cash