Factory Labor Cost Distributed
Most companies distribute labor cost monthly labor time tickets are sorted by job entered on job cost sheets and recorded by summary general journal entries. Rayburn's direct labor time tickets from January total $1,568 for Job 5574, $22,832 for Job 5575,and $2,600 for Job 5576. Indirect labor total $4,000.(In an automated factory with very little direct labor and a single conversion cost classification, all factory labor can be treated the way indirect labor is treated here. No direct labor is charged to any job,and cost sheets contain section for direct materials and conversion cost only.)Rayburn company records both direct and indirect labor by monthly summary entries