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Which of the Following Pair of Journal Entries Correctly Records

Question 114

Multiple Choice

Which of the following pair of journal entries correctly records the current month's activity where the company had $21,030 in total factory labor costs that were paid in cash with $16,200 of this total for direct labor?


A)  Factory Payroll 21,030 Cash 21,030 Wage Expense 16,200 Factory Overhead 4,830 Factory Payroll 21,030\begin{array}{l}\text { Factory Payroll } & 21,030 \\\text { Cash } && 21,030 \\& \\\text { Wage Expense } & 16,200 \\\text { Factory Overhead } & 4,830\\\text { Factory Payroll }&& 21,030\end{array}

B)  Factory Payroll 21,030 Cash 21,030 Goods in Process Inventory 16,200 Wage Expense 4,830 Factory Payroll 21,030\begin{array}{lrr}\text { Factory Payroll } & 21,030 & \\\quad \text { Cash } & & 21,030 \\& & \\\text { Goods in Process Inventory } & 16,200 & \\\text { Wage Expense } & 4,830 & \\\quad \text { Factory Payroll } & & 21,030\end{array}

C)  Cash 21,030 Factory Payroll 21,030 Goods in Process Inventory 16,200 Factory Overhead 4,830 Factory Payroll 21,030\begin{array}{lrr}\text { Cash } & 21,030 & \\\quad \text { Factory Payroll } & & 21,030 \\& & \\\text { Goods in Process Inventory } & 16,200 & \\\text { Factory Overhead } & 4,830 & \\\quad \text { Factory Payroll } & & 21,030\end{array}

D)  Factory Payroll 21,030 Cash 21,030 Goods in Process Inventory 16,200 Factory Overhead 4,830 Factory Payroll 21,030\begin{array}{lrr}\text { Factory Payroll }& 21,030 \\\quad \text { Cash }&& 21,030 \\& \\\text { Goods in Process Inventory } & 16,200 & \\\text { Factory Overhead } & 4,830 \\\quad \text { Factory Payroll } & & 21,030\end{array}

E)  Cash 21,030 Factory Payroll 21,030 Factory Payroll 21,030 Goods in Process Inventory 21,030\begin{array}{lcc}\text { Cash } & 21,030 & \\\quad \text { Factory Payroll } & & 21,030 \\\\\text { Factory Payroll }& 21,030 \\\text { Goods in Process Inventory }&& 21,030 \end{array}

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