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uestioh: T p 15of 501 3 complete! This Test 5 12 Altec Designs makes fashion clo

ID: 2598087 • Letter: U

Question

uestioh: T p 15of 501 3 complete! This Test 5 12 Altec Designs makes fashion clothing and roports the folowing data tor the month of Seplember Salanies paid to seamstresses Wages paid to fabric cutters Indrect wages $110,000 30,000 8,000 What is the journal entry to record the total labor charges incurred dmg September which wd be paidat a laterai O A. Work- in- Process Inventory O B. Wages Payable 148,000 Wages Payable 148,000 Finished Goods Inventory Work-in-Process Invenilory 118.000 30,000 C. 140,000 8,000 Work- in-Process inventory Manufacturing Overhead 168 000 Wages Paysble 148 000 O D Manufactuning Overhead 148.000 Wages Payabie

Explanation / Answer

Journal Entry to record the total labour charges incurred during September Account Titles Debit Credit Work in process Inventory $140,000 Manufacturing Overhead $8,000 Wages Payable $148,000 The salaries and wages are directly related with the work hence charged to work in process directly whereas indirect wages are charged to manufacturing overhead account.