Question

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. In addition, factory overhead charged to production was $32,000. The entry to record the direct labor costs is a. Work in Process150,000 Wages Payable150,000 b. Wages Payable150,000 Work in Process150,000 c. Wages Payable175,000 Work in Process175,000 d. Work in Process175,000 Wages Payable175,000

Answer 1

Answer:

d. Work in Process 175,000 Wages Payable 175,000

Explanation:

Production Orders and General factory expenses are all manufacturing costs and are included in Work In Process Cost for Inventory Valuation. Since the wages have not been paid yet, a Liability account - Wages Payable has to be credited in total of amount due.