During May, Keenan Company accumulated 570 hours of direct labor costs on Job 200 and 610 hours on Job 305. The total direct lab

Question

3 years ago

6

During May, Keenan Company accumulated 570 hours of direct labor costs on Job 200 and 610 hours on Job 305. The total direct lab

or 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.

Business

1 answer:

sashaice [31] · Answer 1 · 2022-04-23T11:15:06+03:00

Answer:

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