Perill CoHas a Five-Day Workweek (Monday Through Friday)

question 113

Multiple Choice

Perill Co.has a five-day workweek (Monday through Friday) .Employees earn $650 per day.If the month ends on Wednesday, and wages will not be paid until Friday, how much wage expense should be accrued on Wednesday?​

• A) ​$650
• B) ​$1,950
• C) ​$3,250
• D) ​$1,300

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Definitions:

Inventory

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or in the rendering of services.

Long-Term Construction

A method in accounting that recognizes the revenues and expenses of long-term construction projects as progress is made on the project.

Completed Contract

A method in accounting where all revenue and expenses of a contract are recognized only when the contract is completed.

Percentage Of Completion

An accounting method that recognizes revenues and expenses of long-term projects as a percentage of the work completed during the period.