Exhibit 19-2 The following information relates to Bergen Corporation:

-Refer to Exhibit 19-2. Based on the information above, the journal entry to record the labor costs and variances for Bergen Corporation would include a debit to:

Question

Exhibit 19-2 The following information relates to Bergen Corporation:

-Refer to Exhibit 19-2. Based on the information above, the journal entry to record the labor costs and variances for Bergen Corporation would include a debit to:

Quizplus · Accepted Answer

The labor costs and variances should be recorded with a debit to work-in-process inventory, which is the account that captures the costs of direct labor used to manufacture products. The total cost, including both standard and actual labor costs and variances, is $48,000, which is the sum of the standard hours allowed ($44,000) multiplied by the standard labor rate ($21 per hour), plus the labor rate variance ($885) and the labor efficiency variance ($800). Therefore, the correct journal entry would be:

Debit: Work-in-process inventory $48,000
Credit: Wages payable $46,315
Credit: Labor rate variance $885
Credit: Labor efficiency variance $800

Exhibit 19-2 the Following Information Relates to Bergen Corporation