Question

During April, Keenan Company accumulated 520 hours of direct labor costs on Job 50 and 580 hours on Job 51. The total direct labor was incurred at a rate of $13 per direct labor hour for Job 50 and $17 per direct labor hour for Job 51.

Journalize the entry to record the flow of labor costs into production during April.

Answer 1

FO Dete alculation Debit credit 8 16620 $ 16620 work in Process I w ages Payable Corecord labor cost to production) wages = Direct labor hour X Rate per hour Job5o = 520 hours x $ 13 = $6760 Jobs I = 580 hours x 8 17 = 89860 Total wages payable $ 16620 All direct labor cost is reported as wagesta Payable and added to work in process at end of Period Here Dolabor cost for Job so is 8 6760 and a | Direct labor cost for Jobs, is $9860. Total Costot $ 16620 is transferred to work in Process. As the Jobs are not completed the cost is transferred to work in process. If any of the ob was completed that Cost would have been added to finished goools.