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} Factory Payroll Cash Wage Expense Factory Overhead Factory Payroll 21 , 030 16 , 200 4 , 830 21 , 030 21 , 030 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} Factory Payroll Cash Goods in Process Inventory Wage Expense Factory Payroll 21 , 030 16 , 200 4 , 830 21 , 030 21 , 030 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} Cash Factory Payroll Goods in Process Inventory Factory Overhead Factory Payroll 21 , 030 16 , 200 4 , 830 21 , 030 21 , 030 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} Factory Payroll Cash Goods in Process Inventory Factory Overhead Factory Payroll 21 , 030 16 , 200 4 , 830 21 , 030 21 , 030 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} Cash Factory Payroll Factory Payroll Goods in Process Inventory 21 , 030 21 , 030 21 , 030 21 , 030
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