Minstrel Manufacturing Uses a Job Order Costing System

question 7

Multiple Choice

Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost.
- The journal entry to record the payment of the factory payroll is:

• A) Debit Work in Process Inventory $110,000; credit Cash $150,000.
• B) Debit Factory Overhead $40,000; credit Factory Wages Payable $40,000.
• C) Debit Work in Process Inventory $150,000; credit Factory Wages Payable $150,000.
• D) Debit Work in Process Inventory $150,000; credit Cash $150,000.
• E) Debit Factory Wages Payable $150,000; credit Cash $150,000.

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Definitions:

Elastic Fibers

Protein fibers in connective tissue that have the ability to stretch and return to their original shape, contributing to the elasticity of organs and tissues.

Reticular Fibers

Fine, branching fibers composed of collagen and glycoproteins, forming a supportive network in various tissues.

Tensile Strength

The maximum stress that a material can withstand while being stretched or pulled before failing or breaking.

Gas Exchange

The biological process through which organisms exchange oxygen and carbon dioxide with their environment, critical for respiration.