The Balance of the Wages Expense Account of Ryan Company

question 16

Essay

The balance of the Wages Expense account of Ryan Company, prior to adjustment, was $9,500. On June 30, the end of the fiscal quarter, an adjustment for $790 of accrued wages needed to be made. Prepare the adjusting entry for wages, the entry to close the Wages Expense account, and the corresponding reversing entry. Omit explanations.

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Definitions:

Step-Variable Cost

A cost that remains constant for a certain level of activity, but changes in step fashion once a certain threshold is surpassed.

Activity

An event that causes the consumption of overhead resources.

Variable Cost Per Unit

The cost that varies with the level of output, computed on a per-unit basis.

Fixed Cost

A fixed cost is a business expense that remains constant regardless of changes in production levels or sales volumes.