Penn Company Uses a Job Order Cost Accounting System

question 143

Multiple Choice

Penn Company uses a job order cost accounting system. In the last month, the system accumulated labor time tickets totaling $24,600 for direct labor and $4,300 for indirect labor. These costs were accumulated in Factory Payroll as they were paid. Which entry should Penn make to assign the Factory Payroll?

• A) Debit Payroll Expense $28,900; credit Cash $28,900.
• B) Debit Payroll Expense $24,600; debit Factory Overhead $4,300; credit Factory Payroll $28,900.
• C) Debit Goods in Process Inventory $24,600; debit Factory Overhead $4,300; credit Factory Payroll $28,900.
• D) Debit Goods in Process Inventory $24,600; debit Factory Overhead $4,300; credit Wages Payable $28,900.
• E) Debit Goods in Process Inventory $28,900; credit Factory Payroll $28,900.

---

Definitions:

Bodily Movement

Actions or motions of the body as a whole or of individual parts, resulting from the interaction of skeletal muscle and the nervous system.

REM Sleep

A sleep stage characterized by rapid eye movements, vivid dreams, and increased brain activity, playing a key role in memory and learning.

Beta Waves

Brainwave patterns associated with active, alert cognition and wakefulness.

Total Sleep Time

The total amount of actual sleep time in a given sleep session, excluding all periods of wakefulness.