The Cavy Company accumulated 560 hours of direct labor on Job 345 and 800 hours on Job 777. The direct labor was incurred at a rate of $20 per direct labor hour for Job 345 and $21 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 exact wording of account titles.

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

Income Summary

Journalize the entry to record the flow of labor costs into production on December 31. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
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