PE 19-2B 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.

Answer:


Work in Process* 186,200  
Wages Payable  186,200 
* Job 40 

$ 87,500 

= 3,500 hours × $25 
Job 42     98,700 = 4,200 hours × $23.50 
Total $186,200