27th Edition
WARREN + 5 others
ISBN: 9781337272094




27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Direct labor costs

During May, Bergan Company accumulated 2,500 hours of direct labor costs on Job 200 and 3,000 hours on Job 305. The total direct labor was incurred at a rate of $28 per direct labor hour for Job 200 and $24 per direct labor hour for Job 305. Journalize the entry to record the flow of labor costs into production during May.

To determine

Direct labor cost

The employees working on particular job use time ticket to record the work done by them with respect to a particular job. The summary of time tickets is used for calculating direct labor cost for a particular job.

To record: Journal entry for labor cost.


The journal entry is prepared as follows:

Date Account titles and Explanation Debit
May   Work in process Table (2) 142,000  
      Wages Payable   142,000
  (Record flow of labor cost)    

Table (1)

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