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Willoughby Manufacturing pays its direct labor employees $20 per hour. During the current period, 300 direct labor hours were recorded on employee time cards, and the company actually paid its direct labor employees $5,400.
a. Record the summary journal entry to apply direct labor costs to all jobs during the period.
b. Prepare the summary journal entry to record direct labor wages paid during the period.
c. What is the balance of the Direct Labor account at the end of the period? How is it reported in the company's financial statements?
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