Reference no: EM132501224

Verrett Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year:

Raw materials purchased on account$475,000

Raw materials (all direct) requisitioned for use in production$476,000

Direct labor cost$640,000

Manufacturing overhead:

Indirect labor cost$174,000

Other manufacturing overhead costs incurred$498,000

Cost of goods manufactured$1,469,000

Cost of goods sold (unadjusted)$1,430,000

Question 1: What is the journal entry to record the direct and indirect labor costs incurred during the year?

Multiple Choice

1. Wages Payable814,000 Direct Labor 640,000Manufacturing Overhead 174,000
2. Wages Payable814,000 Work in Process 640,000Manufacturing Overhead 174,000
3. Direct Labor640,000 Manufacturing Overhead174,000 Wages Payable 814,000
4. Work in Process640,000 Manufacturing Overhead174,000 Wages Payable 814,000