Under a job order cost system of accounting,the entry to distribute payroll to the appropriate accounts would be:
A)Debit-Payroll Credit-Wages Payable
B)Debit-Work in Process Debit-Factory Overhead
Debit-Selling and Administrative Expense
Credit-Payroll
C)Debit-Work in Process Debit-Finished Goods
Debit-Cost of Goods Sold
Credit-Payroll
D)Debit-Work in Process Debit-Factory Overhead
Debit-Selling and Administrative Expense
Credit-Wages Payable

Question

Quizplus · Accepted Answer

In a job order cost system, payroll is typically allocated to specific jobs. Therefore, it would be appropriate to record the payroll expense as a direct cost to Work in Process, along with an appropriate portion of Factory Overhead. Additionally, some portion of the payroll expense may be attributable to Selling and Administrative Expenses, which should also be recorded. The credit to Payroll represents the actual cash outflow for payroll during the period.

Under a Job Order Cost System of Accounting,the Entry to Distribute