Question

During May, Salinger Company accumulated 560 hours of direct labor costs on Job 200 and 670 hours on Job 305. The total direct labor was incurred at a rate of $11 per direct labor hour for Job 200 and $15 per direct labor hour for Job 305. Journalize the entry to record the flow of labor costs into production during May. If an amount box does not require an entry, leave it blank.

Answer 1

See below

Step-by-step explanation:

The preparation of the journal entry to record the flow of labor costs into production during May

Work in process Dr $16,210

-------------- To wages payable Cr $16,210

Workings:

We do know that labor costs are a function of the total hours and hourly rate.

= (560 hours × $11 per direct labor) + (670 hours × $15 per direct labor hour)

= $6,160 + $10,050

= $16,210