The Cavy Company Accumulated 560 Hours of Direct Labor on Job

question 24

Essay

The Cavy Company accumulated 560 hours of direct labor on Job 345 and 800 hours on Job 777. The direct labor was incurred at a rate of $20 per direct labor hour for Job 345 and $21 per direct labor for Job 777. Journalize the entry to record the flow of labor costs into production.

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Definitions:

Inferior Goods

Goods whose demand decreases as the income of the consumers increases, opposite to what is observed with normal goods.

Normal Good

A normal good is a type of good for which demand increases when income increases, and decreases when income decreases, showing a direct relationship between income and demand.

Consumer Income

The total income received by consumers, including wages, salaries, benefits, and income from investments, which can be spent or saved.

Ice Cream

A frozen dessert made from dairy products, such as milk and cream, combined with flavors and sweeteners, often consumed as a treat or snack.