Question

The Cavy Company accumulated

560 hours of direct labor on Job 345
800 hours of direct labor on Job 777
The direct labor incurred at a rate of:
$20 per direct labor hour for Job 345
$21 per direct labor hour for Job 777
Journalize the entry and record the flow of labor costs in production.

Answer 1

Date Journal Entry Debit Credit

Work in Process $28,000

((560*$20) + (800*$21)

Wages payable $28,000

(To record the flow of labor costs in production)