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

question 112

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

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