During the period, labor costs incurred on account amounted to $275,000 including $200,000 for production orders and $75,000 for general factory use. In addition, factory overhead charged to production was $32,000. From the following, select the entry to record the direct labor costs. Work in Process 200,000 Wages Payable 200,000 Work in Process 275,000 Wages Payable 275,000 Wages Payable 275,000Work in Process 275,000 Wages Payable 200,000Work in Process 200,000

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Business

Sariah Kline

9 April, 07:22

During the period, labor costs incurred on account amounted to $275,000 including $200,000 for production orders and $75,000 for general factory use. In addition, factory overhead charged to production was $32,000. From the following, select the entry to record the direct labor costs. Work in Process 200,000 Wages Payable 200,000 Work in Process 275,000 Wages Payable 275,000 Wages Payable 275,000Work in Process 275,000 Wages Payable 200,000Work in Process 200,000

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Cantrell · Answer 1

Answer: Option (a) is correct.

Explanation:

Given that,

Labor costs incurred on account amounted = $275,000 (includes production orders = $200,000)

General factory use = $75,000

Factory overhead charged to production = $32,000

The journal entry for recording direct labor costs as follows:

Work in process A/c Dr. 200,000

To Wages payable A/c 200,000

$75,000 will be shown as factory overhead.