Esposito,Inc B) $$\begin{array} { | c | l | l | } \hline \text { Conversion Costs } & 708,000 & \\\hline \text { Wages Payable } & & 708,000 \\\hline\end{array}$$

question 59

Multiple Choice

Esposito,Inc.uses a just-in-time costing system.During the month,Esposito incurred $700,000 as direct labor and $8000 as overhead.Wages were not paid.Which of the following is the correct journal entry to record the conversion costs?

• A) \[\begin{array} { | c | l | l | }
• \hline \text { Conversion Costs } & 708,000 & \\
• \hline \text { Wages Payable, Accumulated Depreciation, etc. } & & 708,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | l | l | }
• \hline \text { Conversion Costs } & 708,000 & \\
• \hline \text { Wages Payable } & & 708,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | l | l | }
• \hline \text { Manufacturing Overhead } & 708,000 & \\
• \hline \text { Conversion Costs } & & 708,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | l | l | }
• \hline \text { Conversion Costs } & 708,000 & \\
• \hline \text { Accounts Payable } & & 708,000 \\
• \hline
• \end{array}\]

---

Definitions:

Natural

Pertaining to phenomena, elements, or processes that occur in the natural world without human intervention.

Specific

Distinctively characterized by precise and distinct details or features.

Charles Darwin

was an English naturalist, geologist, and biologist, best known for his contributions to the science of evolution and for his proposition of natural selection as a mechanism for evolution.

Naturalist

An individual who studies or has expertise in the field of natural history, focusing on the study of the natural world.