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Cavy Company accumulated 580 hours of direct labor on Job 345 and 850 hours on Job 777. The direct labor was incurred at a rate

Cavy Company accumulated 580 hours of direct labor on Job 345 and 850 hours on Job 777. The direct labor was incurred at a rate of $17 per direct labor hour for Job 345 and $22 per direct labor for Job 777.

Required:

Journalize the entry to record the flow of labor costs into production. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

CHART OF ACCOUNTS
Cavy Company
General Ledger
ASSETS
110 Cash
121 Accounts Receivable
131 Materials
133 Work in Process
135 Factory Overhead
137 Finished Goods
141 Supplies
142 Prepaid Expenses
181 Land
190 Factory Equipment
191 Accumulated Depreciation
LIABILITIES
210 Accounts Payable
221 Utilities Payable
251 Wages Payable
EQUITY
311 Common Stock
340 Retained Earnings
351 Dividends
390 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
520 Wages Expense
531 Insurance Expense
532 Utilities Expense
533 Office Supplies Expense
560 Depreciation Expense
590 Miscellaneous Expense
710 Interest Expense

Cavy Company accumulated 580 hours of direct labor on Job 345 and 850 hours on Job 777. The direct labor was incurred at a rate of $17 per direct labor hour for Job 345 and $22 per direct labor for Job 777.

Required:

Journalize the entry to record the flow of labor costs into production. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

X

Chart of Accounts

CHART OF ACCOUNTS
Cavy Company
General Ledger
ASSETS
110 Cash
121 Accounts Receivable
131 Materials
133 Work in Process
135 Factory Overhead
137 Finished Goods
141 Supplies
142 Prepaid Expenses
181 Land
190 Factory Equipment
191 Accumulated Depreciation
LIABILITIES
210 Accounts Payable
221 Utilities Payable
251 Wages Payable
EQUITY
311 Common Stock
340 Retained Earnings
351 Dividends
390 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
520 Wages Expense
531 Insurance Expense
532 Utilities Expense
533 Office Supplies Expense
560 Depreciation Expense
590 Miscellaneous Expense
710 Interest Expense

X

General Journal

Journalize the entry to record the flow of labor costs into production on December 31. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

PAGE 1

JOURNAL

DATE DESCRIPTION POST. REF. DEBIT CREDIT

1

2

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