Answer:
These are the options for the question:
a.Wages Payable 175,000
Work in Process 175,000
b.Work in Process 175,000
Wages Payable 175,000
c.Work in Process 150,000
Wages Payable 150,000
d.Wages Payable 150,000
Work in Process 150,000
And this is the correct answer:
c.Work in Process 150,000
Wages Payable 150,000
Explanation:
Work in Process in an asset account that values the amount of direct labor performed in the completion of a product. In the question, it is specified that while total labor costs amounted to $175,000, only $150,000 of those costs where used to make the production orders, while $25,000 was used in general factory work (not direct labor).
The counter-account is wages payable, a liability account because it represents labor costs that have yet to be paid (principle of accrual accounting).
