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
- Wages Payable814,000 Direct Labor 640,000Manufacturing Overhead 174,000
- Wages Payable814,000 Work in Process 640,000Manufacturing Overhead 174,000
- Direct Labor640,000 Manufacturing Overhead174,000 Wages Payable 814,000
- Work in Process640,000 Manufacturing Overhead174,000 Wages Payable 814,000