Page 793 - Accounting Principles (A Business Perspective)
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19. Process: Cost systems
• Direct labor costs charged to jobs in April were USD 32,000. All labor costs were the same rate per hour for
April for all laborers.
a. Compute the cost of each job, whether in inventory or sold.
b. Show the transactions in journal entry form. Use a separate Work in Process Inventory account for each job.
c. Prepare an income statement for April assuming revenue was USD 250,000 and selling and administrative
expenses were USD 60,000.
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