The weekly time tickets indicate the following distribution of labor hours for three direct labor employees:

	Hours
				Process
	Job 301	Job 302	Job 303	Improvement
Tom Couro	9	14	12	1
David Clancy	12	10	13	3
Jose Cano	13	15	17	3

The direct labor rate earned per hour by the three employees is as follows:

Tom Couro	$30
David Clancy	36
Jose Cano	26

The process improvement category includes training, quality improvement, and other indirect tasks.

	Required:
A.	Journalize the entry on July 15 to record the factory labor costs for the week.
B.	Assume that Jobs 301 and 302 were completed but not sold during the week and that Job 303 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?

Chart of Accounts

CHART OF ACCOUNTS

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable
125	Notes Receivable
126	Interest Receivable
131	Materials
132	Work in Process
133	Factory Overhead
134	Finished Goods
141	Supplies
142	Prepaid Insurance
143	Prepaid Expenses
181	Land
191	Factory
192	Accumulated Depreciation-Factory

	LIABILITIES
210	Accounts Payable
221	Utilities Payable
231	Notes Payable
236	Interest Payable
241	Lease Payable
251	Wages Payable
252	Consultant Fees 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	Selling Expenses
532	Insurance Expense
533	Utilities Expense
534	Office Supplies Expense
540	Administrative Expenses
560	Depreciation Expense-Factory
590	Miscellaneous Expense
710	Interest Expense

Journal

A. Journalize the entry on July 15 to record the factory labor costs for the week.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

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

Final Question

B. Assume that Jobs 301 and 302 were completed but not sold during the week and that Job 303 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?

	Cost of Goods Sold	Work In Process	Finished Goods	Factoy Overhead
Job 301
Job 302
Job 303