Which of the Following Pair of Journal Entries Correctly Records

question 188

Multiple Choice

Which of the following pair of journal entries correctly records the current month's activity where the company had $21,030 in total factory labor costs that were paid in cash with $16,200 of this total for direct labor?

• A)\(\begin{array}{l}
• \text { Factory Payroll } & 21,030 \\
• \text { Cash } && 21,030 \\
• & \\
• \text { Wage Expense } & 16,200 \\
• \text { Factory Overhead } & 4,830\\
• \text { Factory Payroll }&& 21,030
• \end{array}\)
• B)\(\begin{array}{lrr}
• \text { Factory Payroll } & 21,030 & \\
• \quad \text { Cash } & & 21,030 \\
• & & \\
• \text { Goods in Process Inventory } & 16,200 & \\
• \text { Wage Expense } & 4,830 & \\
• \quad \text { Factory Payroll } & & 21,030
• \end{array}\)
• C)\(\begin{array}{lrr}
• \text { Cash } & 21,030 & \\
• \quad \text { Factory Payroll } & & 21,030 \\
• & & \\
• \text { Goods in Process Inventory } & 16,200 & \\
• \text { Factory Overhead } & 4,830 & \\
• \quad \text { Factory Payroll } & & 21,030
• \end{array}\)
• D)\(\begin{array}{lrr}
• \text { Factory Payroll }& 21,030 \\
• \quad \text { Cash }&& 21,030 \\
• & \\
• \text { Goods in Process Inventory } & 16,200 & \\
• \text { Factory Overhead } & 4,830 \\
• \quad \text { Factory Payroll } & & 21,030
• \end{array}\)
• E)\(\begin{array}{lcc}
• \text { Cash } & 21,030 & \\
• \quad \text { Factory Payroll } & & 21,030 \\\\
• \text { Factory Payroll }& 21,030 \\
• \text { Goods in Process Inventory }&& 21,030 \end{array}\)

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Definitions:

Assignee

The person or entity to whom rights, interests, or properties are legally transferred.

Rights to Payment

Legal entitlements to receive money from another party, either through contractual agreement or as compensation for damages.

Personal in Nature

Characteristics or belongings that are intimately related to an individual's private life or identity.

Assignment

The transfer of rights, property, or obligations from one party to another, often used in contracts and in the context of loans or leases.