Juarez Builders Incurred $285,000 of Labor Costs for Construction Jobs

question 179

Multiple Choice

Juarez Builders incurred $285,000 of labor costs for construction jobs completed during the month of August, of which $212,000 was direct and $73,000 was indirect supervisory costs.
-The correct journal entry to record the direct labor for the month is:

• A) Debit Work in Process Inventory $285,000; credit Factory Wages Payable $285,000.
• B) Debit Work in Process Inventory $212,000; credit Factory Wages Payable $212,000.
• C) Debit Payroll Expense $212,000; credit Cash $212,000.
• D) Debit Work in Process Inventory $212,000; credit Cash $285,000.
• E) Debit Factory Wages Payable $285,000; credit Work in Process Inventory $212,000.

Understand the relationship between resource prices, marginal revenue product, and employment levels in perfectly competitive firms.

Distinguish between complements and substitutes in resource usage.

Understand the concept and application of Marginal Revenue Product (MRP) in labor and land decision-making.

Analyze the effects of wage rates and rent on the utilization of labor and land.

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Definitions:

Mutual Assistance

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A research approach engaging participants as active contributors in the research process to address issues affecting their community or group.

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A coordinated approach where professionals from diverse fields collaborate to advocate for policy changes, support for individuals, or advancements in research.

Ability

The competence or skill to do something effectively.