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Juarez Builders incurred $285,000 of labor costs for construction jobs completed during the month of August, of which $212.000 was direct and $73,000 was indirect supervisory costs. The correct journal entry to record the direct labor for the month is: Multiple Choice Debit Work in Process Inventory $285,000; credit Factory Wages Payable $285,000. Debit Factory Woges Payable $285,000; credit Work in Process inventary $212,000 Debit Payroll Expense \$212.000; eredit Cash \$212.000 Dobit Work in Process inventory $212,000; cedit Cash $285,000 Debit Work in Process Inventory $212,000; credit Factory Wages Payable $212,000
Juarez Builders incurred $285,000 of labor costs for construction jobs completed during the month of August, of which $212.000 was direct and $73,000 was indirect supervisory costs. The correct journal entry to record the direct labor for the month is: Multiple Choice Debit Work in Process Inventory $285,000; credit Factory Wages Payable $285,000. Debit Factory Woges Payable $285,000; credit Work in Process inventary $212,000 Debit Payroll Expense \$212.000; eredit Cash \$212.000 Dobit Work in Process inventory $212,000; cedit Cash $285,000 Debit Work in Process Inventory $212,000; credit Factory Wages Payable $212,000
Final answer:The correct journal entry to record the direct labor costs for Juarez Builders is to debit Work in Process Inventory for $212,000 and credit Factory Wages Payable for $212,000.Explanation:The question asks for the correct journal entry to record the direct labor costs incurred by Juarez Builders for construction jobs completed during the month of August. The company incurred a total of $285,000 in labor costs, of which $212,000 was for direct labor and $73,000 was for indirect supervisory costs.The correct journal entry to record direct labor for the month is to debit Work in Process Inventory for $212,000 and credit Factory Wages Payable for $212,000.This entry accurately reflects the allocation of direct labor costs to work in process, meaning the costs are directly associated with the production of tangible goods and are thus capitalized into the value of the inventory.The indirect labor costs, or supervisory costs, are not directly attributable to specific jobs and would typically be recorded differently....