Question

Joelle Company accumulated 530 hours of direct labor costs on Job 233 and 615 hours on Job 234. The total direct labor was incurred at a rate of $20 per direct labor hour. Which of the following journal entries is correct

Answer 1

Answer:

Journal Entry

Job 233

Dr Wage Control A/c   $10,600  

Cr. Work in Process A/c $10,600

Job 234

Dr Wage Control A/c      $12,300

Cr. Work in Process A/c $12,300

Explanation:

Work in process account is used to record all the cost of manufacturing products which is under process. This account maintain the records of product under process and transferred these costs when products are completed.

Job 233

Wage expense = 530 x $20 = $10,600

Job 234

Wage expense = 615 x $20 = $12,300

Answer 2

Answer:

$22,900.

Explanation:

the following is the correct journal entry:

sno              accounts                  debit      credit

1        Work in process a/c $22,900  

...........To wages payable a/c                      $22,900

Working process account is to be debited for the labour cost incurred on jobs.

amount = (530 hours + 615 hours) * $20 per hour =>$22,900.