Make the journal entry to record the direct labour costs

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Question - Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March-Job P and Job Q. Job P was completed and sold by the end of March and Job Q was incomplete at the end of March. The company uses a plantwide predetermined overhead rate based on direct labour-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):

Estimated total fixed manufacturing overhead $12,000

Estimated variable manufacturing overhead per direct labour-hour $1.40

Estimated total direct labour-hours to be worked 2,400

Total actual manufacturing overhead costs incurred $14,500

 

Job P

Job Q

Direct materials

$15,000

$8,400

Direct labour

$22,500

$10,500

Actual direct labour-hours worked

1,500

700

Required - Assume that the company does not use any indirect labour. Make the journal entry to record the direct labour costs added to production.

Reference no: EM132728490

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