When Factory Payroll Costs for Labor Are Allocated in a Job

question 72

Multiple Choice

When factory payroll costs for labor are allocated in a job cost accounting system:

• A)Factory Payroll is debited and Work in Process Inventory is credited.
• B)Work in Process Inventory and Factory Overhead are debited and Factory Payroll is credited.
• C)Cost of Goods Manufactured is debited and Direct Labor is credited.
• D)Direct Labor and Indirect Labor are debited and Factory Payroll is credited.
• E)Work in Process Inventory is debited and Factory Payroll is credited.

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