Which of the Following Pair of Journal Entries Correctly Records

question 57

Multiple Choice

Which of the following pair of journal entries correctly records the current month's activity where the company had $42,060 in total factory labor costs that were paid in cash with $32,400 of this total for direct labor?

• A)\(\begin{array}{llr}
• \text { Factory Payroll } &42,060\\
• \text { Cash } &&42,060\\
• \\
• \text { Wage Expense } &32,400\\
• \text { Factory Overhead } &9,660\\
• \text {Factory Payroll } &&42,060\\
• \end{array}\)
• B)\(\begin{array}{llr}
• \text { Factory Payroll } &42,060\\
• \text { Cash } &&42,060\\
• \\
• \text { Wage Expense } &32,400\\
• \text { Factory Overhead } &9,660\\
• \text {Factory Payroll } &&42,060\\
• \end{array}\).
• C)\(\begin{array}{llr}
• \text {Cash } &42,060\\
• \text { Factory Payroll } &&42,060\\
• \\
• \text { Goods in Process Inventory } &32,400\\

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Definitions:

Units

Basic quantities or measurements used as standards for expressing and comparing the quantity of physical properties.

Tax

Tax refers to a compulsory financial charge or some other type of levy imposed upon a taxpayer by a government organization in order to fund government spending and various public expenditures.

Good

An item or product that satisfies a want or need and can be transferred to others.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing their gain from the transaction.