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Direct Labor Costs During August, Salinger Company accumulated 500 hours of direct labor costs on Job 40 and 600 hours on Job
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General Journal. Debit. Credit

Work in process. $21,000

Wages payable. $21,000

(To record direct labor cost flow into production)

*Working notes:

*Calculation of total direct labor cost:

Direct labor cost = Total direct labor hours * Wages rate per hour

Job 40 (500*$18). = $9,000

Job 42 (600*$20). = $12,000

Direct labor cost. $21,000

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