During February, Gross Company accumulated 15,000 hours of direct labor costs on Job 60 and 18,000 hours on Job 61

During February, Gross Company accumulated 15,000 hours of direct labor costs on Job 60 and 18,000 hours on Job 61. The total direct labor was incurred at a rate of $24.00 per direct labor hour for Job 60 and $26.50 per direct labor hour for Job 61. Journalize the entry to record the flow of labor costs into production during February.

Answer:


Work in Process* 837,000  
Wages Payable  837,000 
* Job 60 

$360,000 


On August 4, Rothchild Company purchased on account 12,000 units of raw materials at $14 per unit. On August 24, raw materials were requisitioned for production as follows: 5,000 units for Job 40 at $8 per unit and 6,200 units for Job 42 at $14 per unit. Journalize the entry on August 4 to record the purchase and on August 24 to record the requisition from the materials storeroom.

Answer:

Aug. 4 Materials 168,000  

  Accounts Payable  168,000 

  $168,000 = 12,000 × $14.   

     

 24 Work in Process* 126,800  

  Materials  126,800 

* Job 40 

 

$ 40,000 

 

= 5,000 × $8