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