Minstrel Manufacturing Uses a Job Order Costing System

question 35

Multiple Choice

Minstrel Manufacturing uses a job order costing system.During one month,Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect.Minstrel incurred a factory payroll of $150,000,of which $40,000 was indirect labor.Minstrel uses a predetermined overhead rate of 150% of direct labor cost.
-The journal entry to record the payment of the factory payroll is:

• A)Debit Work in Process Inventory $150,000; credit Factory Wages Payable $150,000.
• B)Debit Work in Process Inventory $150,000; credit Cash $150,000.
• C)Debit Factory Wages Payable $150,000; credit Cash $150,000.
• D)Debit Factory Overhead $40,000; credit Factory Wages Payable $40,000.
• E)Debit Work in Process Inventory $110,000; credit Cash $150,000.

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Definitions:

Basic Infrastructure

Fundamental facilities and systems serving a country, city, or area, including transportation and communication systems, power plants, and schools.

Power Generation

The process of producing electricity through various means like fossil fuels, nuclear power, or renewable resources.

Import Substitution Strategy

An economic policy aimed at reducing foreign dependency by encouraging local production of industrialized products.

Comparative Advantage

The advantage in the production of a good enjoyed by one country over another when that good can be produced at lower cost in terms of other goods than it could be in the other country.