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Question
Penn Company uses a job order cost accounting system. In the last month, the system accumulated labor time tickets totaling $24,600 for direct labor and $4,300 for indirect labor. These costs were accumulated in Factory Payroll as they were paid. Which entry should Penn make to assign the Factory Payroll?
| (A) | Payroll Expense | 28,900 | |
| Cash | 28,900 | ||
| (B) | Payroll Expense | 24,600 | |
| Factory Overhead | 4,300 | ||
| Factory Payroll | 28,900 | ||
| (C) | Goods in Process Inventory | 24,600 | |
| Factory Overhead | 4,300 | ||
| Factory Payroll | 28,900 | ||
| (D) | Goods in Process Inventory | 24,600 | |
| Factory Overhead | 4,300 | ||
| Accrued Wages Payable | 28,900 | ||
| (E) | Goods in Process Inventory | 28,900 | |
| Factory Payroll | 28,900 | ||
A. A
B. B
C. C
D. D
E. E
Answer
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