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 $73,000 indirect labor for the month is:

A. Debit Supervisor Wage Expense; credit Factory Wages Payable.
B. Debit Factory Overhead; credit Factory Wages Payable.
C. Debit Supervisor Wage Expense; credit Factory Overhead.
D. Debit Factory Wage Expense; credit Cash.
E. Debit Factory Wages Payable; credit Factory Overhead.


Answer: B

Business

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