The Assembly Department produced 4,200 units of product during March. Each unit required 2.60 standard direct labor hours. There were 11,420 actual hours used in the Assembly Department during March at an actual rate of $17.40 per hour. The standard direct labor rate is $18.00 per hour.

Assuming that direct labor for a month is paid on the fifth day of the following month, journalize the direct labor in the Assembly Department on March 31. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS

Assembly Department

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable
125	Notes Receivable
126	Interest Receivable
130	Materials
133	Work in Process
136	Factory Overhead
138	Finished Goods
141	Supplies
142	Prepaid Insurance
143	Prepaid Expenses
181	Land
190	Office Equipment
191	Accumulated Depreciation-Office Equipment
192	Machinery
193	Accumulated Depreciation-Machinery
194	Factory
195	Accumulated Depreciation-Factory

	LIABILITIES
210	Accounts Payable
221	Utilities Payable
231	Notes Payable
236	Interest Payable
241	Lease Payable
251	Wages Payable

	EQUITY
311	Common Stock
340	Retained Earnings
351	Dividends

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Goods Sold
520	Direct Materials Quantity Variance
521	Direct Materials Price Variance
522	Direct Labor Time Variance
523	Direct Labor Rate Variance
530	Wages Expense
531	Selling Expense
532	Insurance Expense
533	Utilities Expense
534	Office Supplies Expense
540	Administrative Expense
560	Depreciation Expense-Office Equipment
561	Depreciation Expense-Machinery
562	Depreciation Expense-Factory
590	Miscellaneous Expense
710	Interest Expense

X

Journal

Assuming that direct labor for a month is paid on the fifth day of the following month, journalize the direct labor in the Assembly Department on March 31. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4