Davis Corp

question 79

Multiple Choice

Davis Corp.has three employees.Each earns $600 per week for a five-day workweek ending on Friday.This month the last day of the month falls on a Wednesday.The company should make which of the following adjusting entries?

• A)Credit Wages Expense for $360 and debit Wages Payable for $360
• B)Debit Wages Expense for $1,800 and credit Wages Payable for $1,800
• C)Credit Wages Expense for $1,800 and debit Wages Payable for $1,800
• D)Debit Wages Expense for $360 and credit Wages Payable for $360

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Definitions:

Performance

The act of performing; executing or accomplishing something such as tasks or operations, measured against pre-set standards.

Variable Costs

Costs that vary directly with the level of production or output, such as raw materials, packaging, and direct labor, which increase as production increases and decrease as production decreases.

Marginal Revenue

The additional income earned from selling one more unit of a good or service, an important concept in pricing and production decisions.

Total Revenue

The total amount of money generated by the sale of goods or services by a company before any costs are subtracted.