Question

NDTAP der Costing G Google Passwor Enter your passe EX 19-6 Entry for factory labor costs Obj. 2 The weekly time tickets indicate the following distribution of labor hours for three direct labor employees: Job 302 Process Job 303 Improvement Tom Couro David Clancy Jose Cano Job 301 10 12 The direct labor rate earned per hour by the three employees is as follows: Tom Couro David Clancy Jose Cano The process improvement category includes training, quality improvement, and other indirect tasks. 2. Journalize the entry to record the factory labor costs for the week. b. Assume that Jobs 301 and 302 were completed but not sold during the week and that Job 303 remained incomplete at the end of the week. How would the direct labor costs for all three jobs be reflected on the financial statements at the end of the week? MacBook Air

Answer 1

A)

	DIRECT			INDIRECT
	Total Direct labor hours	Rate per hour	Total direct labor cost	Total Indirect labor hours	Rate per hour	Total Indirect labor cost
Tom Couro	10+15+13=38	32	38*32= 1216	2	32	2*32= 64
David Clancy	12+12+14=38	36	38*36= 1368	2	36	2*36= 72
Jose Cano	11+13+15=39	28	39*28=1092	1	28	1*28=28
Total			3676			164

Account title	Debit	credit
Work in process	3676
Factory overhead	164
Wages payable		3840

b)

BALANCE SHEET (EXTRACT)
Asset
current asset
Inventory
work in process (Job 303)	1340
Finished goods inventory (Job 301 +Job 302)	2336
Total inventory	3676

working:

	Job 301	302	303
Tom Couro	10*32=320	15*32=480	13*32= 416
David Clancy	12*36= 432	12*36= 432	14*36= 504
Jose Cano	11*28=308	13*28= 364	15*28= 420
Total	1060	1276	1340