Diaz Company Uses Process Costing in Its Two Processing Departments $\begin{array}{llr} \text { Wages Payable } &15,000\\ \text { Wages Expense } &&15,000\\\end{array}$

question 31

Short Answer

Diaz Company uses process costing in its two processing departments Assembly and Finishing.If the direct labor costs incurred for the Assembly Department totaling $15,000 are to be paid next month,which one of the following journal entries would be made to record this transaction?
a.
$\begin{array}{llr} \text { Wages Payable } &15,000\\ \text { Wages Expense } &&15,000\\\end{array}$

b.
$\begin{array}{llr} \text {WIP Inventory - Assembly } &15,000\\ \text {Wages Payable } &&15,000\\\end{array}$

c.
$\begin{array}{llr} \text {Wages Payable } &15,000\\ \text { WIP Inventory - Assembly} &&15,000\\\end{array}$

d.
$\begin{array}{llr} \text {Wages Expense } &15,000\\ \text { WIP Inventory - Assembly } &&15,000\\\end{array}$

e. $\text { None of the answer choices is correct.}$

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