Question

ABC Company employs a job-order costing and reported the following transactions
during the month of March:

a. direct materials purchased on account totaled $27,000
b. direct materials used were: Job #1, $12,500; Job #2, $11,260; and
   Job #3, $5,500
c. direct labor incurred was: Job #1, 250 hours at $20 per hour; Job #2,
   280 hours at $15 per hour; and Job #3, 140 hours at $12 per hour
d. overhead was applied to jobs at a rate of 70% of direct labor cost
e. Job #2, which consisted of 100 units, was completed and transferred to
   the finished goods warehouse
f. 37 units from Job #2 were sold and shipped to the customer; the customer
   was billed for 160% of the cost of the units

The journal entry to record the direct labor cost for March would include a
debit to:

Answer 1

The journal entry to record the direct labor cost for March would include a
debit to:

Account	Debit	Credit
Work in process account	30880
To Labor expenses account		30880
(Being direct labor expenses recorded for job)

Total direct labor expenses are :- 1250*20+ 280*15+ 140*12= 30880