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14 June, 12:53

During May, Keenan Company accumulated 570 hours of direct labor costs on Job 200 and 610 hours on Job 305. The total direct labor was incurred at a rate of $20 per direct labor hour for Job 200 and $23 per direct labor hour for Job 305. Journalize the entry to record the flow of labor costs into production during May.

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  1. 14 June, 16:51
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    Dr work-in process $ 25,430.00

    Cr wages payable $ 25,430.00

    Explanation:

    The total labor cost on jobs is the total hours spent on each job multiplied by direct labor cost per hour as shown thus:

    Job 200=570*$20=$11,400.00

    Job 305=610*$23=$14,030.00

    Total direct labor cost on both jobs=$11,400.00 + $14,030.00 = $ 25,430.00

    The journal entries in respect of labor cost of $25,430.00 is to debit work-in process and again a credit goes to wages payable
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