EX 16-7

Entry for factory labor costs

Obj. 2The weekly time tickets indicate the following distribution of labor hours for three direct labor employees:

	Hours
	Job 301	Job 302	Job 303	Process Improvement
Tom Couro	10	15	13	2
David Clancy	12	12	14	2
Jose Cano	11	13	15	1

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

Tom Couro	$32
David Clancy	36
Jose Cano	28

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

Journalize the entry to record the factory labor costs for the week.

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?