 And I want to point out also that note that the factory overhead before this had nothing in it. And that's just to point out that we could do this allocation. That's why we base it on last year's numbers and that's why it's an estimate because we want to be able to allocate it out before maybe there's even stuff in the factory overhead because it's gonna even out at the end of the time period and we'll have to make an adjustment for it. So that's why we have to make the estimate kind of based on last year's numbers. We actually have negative factory overhead. We allocated stuff out before we recorded the factory overhead in this case. And so now we have a negative factory overhead, kind of like negative inventory. We're gonna put the stuff in the factory overhead in the next few journal entries and then we will end up with something close, hopefully, to zero. It should go in the factory overhead and then out of factory overhead. Or in this case, out of factory overhead and then in the factory overhead. But so it should even out by the end of the time period. And so we're putting it in there and then the other side is going in here in the working process. So we're putting it in the working process. Here's working process. What's in working process now? Remember, this was direct labor. I mean, this was direct material. This was direct labor. This is factory overhead. And we're gonna have to then allocate that, of course, to the job because we hit the working process. We need to back this number out by job. Here's how we're gonna back it up over here. Now, how are we calculating this? We're saying direct labor. So in this case, direct labor total was this 218 we did last time, 218 times 0.5. That's how we're coming up with the 109 total. If we wanna break it out by job, then we're just gonna say, okay, here's the direct labor, the 30,000 times 0.5. That's our 15 for job 14. And then we're doing the same thing here. The 120 times 0.5, that's the 60,000 here. And then the 68,000 here, 68,000 times 0.5, that's the 34,000. Now remember, these numbers don't have anything to do with labor, but we used labor in order to see how big each of these jobs are relative to each other. So you notice that this one had labor of 120. The rationale being that we should allocate more to this job based on the fact that direct labor is higher because that would indicate that it's a bigger job. Therefore, we allocated more overhead 60 to here compared to 15, which had much less direct labor. These two aren't directly related. This direct labor indicates the size of the job and therefore the allocation method for the factory overhead. All right, so next time indirect labor paid and assigned to the factory. All right, indirect labor. So we're gonna debit factory overhead. We're gonna credit cash. These are gonna be the types of things that we're gonna have to put into factory overhead, which we already allocated out before. So the factory overhead, indirect labor, once again, we're gonna think about payroll here. This is payroll happening. We're not thinking about payroll taxes. We're debiting instead of payroll expense again, we're debiting factory overhead because it's going into the assets. Last time we debited factory overhead for payroll for the direct labor. And the difference here is that we don't know which job these guys worked on specifically. It might be the supervisors or something that kind of supervised all the jobs or maybe we don't know what they did really, but we need to apply it to the job somehow. So therefore we're gonna put it into factory overhead and then allocate it out using that allocation method we did last time. So we already allocated it out, see? And now we're putting it in, this 14,000 into factory overhead. No effect in this case in the job cost because when we put it into factory overhead, we haven't yet applied it to the job. We haven't put it into work and process. That's the whole point of us putting it in the factory overhead. I don't know which job to put it into. Therefore we couldn't put it into work and process. We're gonna allocate it out as best we can using some kind of ratio. All right, and of course the total here still ties out to the total there and the total there. And next thing that happens amounts applied to factory overhead. So here's all the other stuff that can kind of be in factory overhead. We got the indirect materials. We've got the factory utilities, the factory rent, the depreciation, these are all things that on the factory, anytime something says on the factory, that means it's going into inventory. That's part of the inventory process and either we can apply it directly to the job which means we put it into work and process or we can't, in this case, therefore it's going into factory overhead. So the journal entries related to this then would be materials. We're gonna debit factory overhead, the 14,000, I'm sorry, factory overhead for the 30,000. That's this item here because we did the 14 last time. And then we're going to credit raw materials inventory. It's coming out of the raw materials up here. And we can also see that right there. All right, and so these are gonna be things that we couldn't apply directly like glue or something like that, types of material. We couldn't apply directly to the job. Then we got utilities. So we're gonna debit the factory overhead for the 12. Here it is there. And we're gonna credit cash. This is another one that if you think of utilities you probably think utilities expense. And so what are you doing debiting the factory overhead? Because it's utilities on the factory and therefore it's part of the inventory and we have to capitalize it. So it is in accordance with the accrual matching principle but you may have just memorized that utilities should be debiting utilities expense. So you gotta unlearn that. And then next we have the rent 20,000 to factory overhead. Here's the 20,000. We're gonna credit cash again for paying the rent. And this is another one. You probably think rent expense, right? That's why we're debiting the factory. And again, same thing. We'll rent on the factory when we make inventory. Therefore we have to put it into the cost of the inventory. And then we have the depreciation on the equipment. 30,000 debit. Here it is in the factory overhead and credit accumulated depreciation. Once again, you're probably thinking how do we record depreciation expense since the beginning of time? Debit depreciation expense, credit accumulated. Well,