1.2

Recording Factory Labor Costs The weekly time tickets indicate the following distribution of labor hours for three direct labor employees: Hours Job 560A Process Improvement Eva Leavitt 24 11 Job 560B 10 16 Job 5600 8 11 Micah Stone 1 Travis Hendrix The direct labor rate earned per hour by the three employees is as follows: Leavitt $18 Stone 25 Hendrix The process improvement category includes training, quality improvement, housekeeping, and other indirect tasks. a. Determine the amounts of factory labor costs transferred to Work in Process and Factory Overhead for the week. Factory labor costs transferred to Work in Process Factory labor costs transferred to Factory Overhead b. Assume that Jobs 560A and 560B were completed but not sold during the week and that Job 560C 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? Direct Labor Costs Job 560A Job 560B Job 5600