Your answer is partially correct. Try again. The gross earnings of the factory workers for Larkin Company during the month of January are $78,000. The employer's payroll taxes for the factory payroll are $7,700. 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 (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation (a) Factory Labor Debit Credit 100600 Factory Wages Payable 87000 Employer Payroll Taxes Payable 8300 Employer Fringe Benefits Payable 5300 (b) Work in Process Inventory 85510 Manufacturing Overhead 15090 Factory Labor 100600