Entry for Factory Labor Costs The weekly time tickets indicate the following distribution of labor...
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Accounting
Entry for Factory Labor Costs
The weekly time tickets indicate the following distribution of labor hours for three direct labor employees:
HoursJob 301
HoursJob 302
HoursJob 303
Hours ProcessImprovement
Tom Couro
10
15
13
2
David Clancy
12
12
14
2
Jose Cano
11
13
15
1
The direct labor rate earned per hour by the three employees is as follows:
Employee
Direct Labor Rate
Tom Couro
$32
David Clancy
36
Jose Cano
28
The process improvement category includes training, quality improvement, and other indirect tasks.
Question Content Area
a. Journalize the entry to record the factory labor costs for the week. If an amount box does not require an entry, leave it blank.
Account
Debit
Credit
- Select -
- Select -
- Select -
- Select -
- Select -
- Select -
b. Assume that Jobs 301 and 302 were completed but not sold during the week and that Job 303 remained incomplete at the end of the week. How would the direct labor costs for all three jobs be reflected on the financial statements at the end of the week? The direct labor costs for the completed jobs would become part of the cost of goods sold OR finished goods inventory OR work in process inventory? Select one.
The direct labor costs for Job 303 would be remain part of the cost of goods sold OR finished goods inventory OR work in process inventory? Select one.
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