When Factory Payroll Costs for Labor Are Allocated in a Job

question 156

Multiple Choice

When factory payroll costs for labor are allocated in a job cost accounting system:

• A) Factory Payroll is debited and Goods in Process Inventory is credited.
• B) Goods in Process Inventory and Factory Overhead are debited and Factory Payroll is credited.
• C) Cost of Goods Manufactured is debited and Direct Labor is credited.
• D) Direct Labor and Indirect Labor are debited and Factory Payroll is credited.
• E) Goods in Process Inventory is debited and Factory Payroll is credited.

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