# Direct labor costs During August, Rothchild Company accumulated 3,500 hours of direct labor costs on Job 40 and 4.200 hours on Job 42. The total direct labor was incurred at a rate of \$ 25.00 per direct labor hour for Job 40 and \$ 23.50 per direct labor hour for Job 42. Journalize the entry to record the flow of labor costs into production during August.

### Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

### Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

#### Solutions

Chapter
Section
Chapter 19, Problem 19.2BPE
Textbook Problem

## Direct labor costsDuring August, Rothchild Company accumulated 3,500 hours of direct labor costs on Job 40 and 4.200 hours on Job 42. The total direct labor was incurred at a rate of \$25.00 per direct labor hour for Job 40 and \$23.50 per direct labor hour for Job 42. Journalize the entry to record the flow of labor costs into production during August.

Expert Solution
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.

### Explanation of Solution

The journal entry is prepared as follows:

 Date Account titles and Explanation Debit (\$) Credit (\$) August Â Work in process Table (2) 186,200 Â Â Â Â Â  Wages Payable Â 186,200 Â (Record flow of labor cost) Â Â

Table (1)

...

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