Question

The Cavy Company accumulated 590 hours of direct labor on Job 345 and 880 hours on Job 999. The direct labor was incurred at a rate of $18 per direct labor hour for Job 345 and $26 per direct labor for Job 999. Journalize the entry to record the flow of labor costs into production.

Answer 1

33,500 Answer - Journal Date Persiculars 4F Debit & credits work-in-process Alc Dr Towages payable 33,500 Alc (being entry of labour cost in Production) Total labor cost incurred = (590 hours x$18) + (880 hours x826) = $33,500 Excplanation The amount is debited to work in process so as to add up to other direct cost of procluction while entry into wages payable Indicates that employees are being owed.