During May, Salinger Company accumulated 740 hours of direct labor costs on Job 200 and 900 hours on Job 305. The total direct labor was incurred at a rate of $20 per direct labor hour for Job 200 and $23 per direct labor hour for Job 305.Journalize the entry to record the flow of labor costs into production during May. If an amount box does not require an entry, leave it blank.

Answers

Answer 1

Answer:

May

Dr Work in Process $35,500

Cr Wages Payable $35,500

Explanation:

Preparation of the Journal entry to record the flow of labor costs into production during May

Based on the information given the Journal entry to record the flow of labor costs into production during May will be :

May

Dr Work in Process $35,500

Cr Wages Payable $35,500

Calculated as:

Labor costs = (740*20)+(900*23)

Labor costs=14,800+20,700

Labor costs=$35,500


Related Questions

Company A and Company B are a duopoly, an oligopoly of only two firms. Neither company advertises its product and both firms earn $10 million in profits. Company A is considering increases to its advertising budget which would raise its profits to $12 million. Below is the payoff matrix for both companies and their decision as to whether to advertise or not.
Company A' Profits
Don't Adevertise Advertise
Don't Advertise A: $10 million A: $12 million
B: $10 million B: $6 million
Company B's Profits A: $6 million A: $8 million
B: $12 million B: $8 million
If Company A increases its advertising budget, Company B should:____.
A. Shut down.
B. Continue to not advertise.
C. Increase its advertising budget.
D. Increase the price it charges to increase profits.

Answers

Answer: C. Increase its advertising budget.

Explanation:

If Company A advertises and Company B does not, Company B profits are $6 million compared to $12 million for Company A. If both company advertise, they both have a profit of $8 million.

It is therefore important that when A advertises, B should advertise as well. This is why B should increase its advertising budget when A does because it will lead to them having a better income than they would should A advertise more.

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