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Question
Which of the following pair of journal entries correctly records the current months activity where the company had $21,030 in total factory labor costs that were paid in cash with $16,200 of this total for direct labor?
| A. | Factory Payroll | 21,030 | |
| Cash | 21,030 | ||
| Wage Expense | 16,200 | ||
| Factory Overhead | 4,830 | ||
| Factory Payroll | 21,030 | ||
| B. | Factory Payroll | 21,030 | |
| Cash | 21,030 | ||
| Goods in Process Inventory | 16,200 | ||
| Wage Expense | 4,830 | ||
| Factory Payroll | 21,030 | ||
| C. | Cash | 21,030 | |
| Factory Payroll | 21,030 | ||
| Goods in Process Inventory | 16,200 | ||
| Factory Overhead | 4,830 | ||
| Factory Payroll | 21,030 | ||
| D. | Factory Payroll | 21,030 | |
| Cash | 21,030 | ||
| Goods in Process Inventory | 16,200 | ||
| Factory Overhead | 4,830 | ||
| Factory Payroll | 21,030 | ||
| E. | Cash | 21,030 | |
| Factory Payroll | 21,030 | ||
| Factory Payroll | 21,030 | ||
| Goods in Process Inventory | 21,030 | ||
Answer
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