Question

Etwell, inc. incurred​ $2,000 for indirect labor in department iii. the journal entry to record indirect labor utilized is​ ________.
a. debit accounts​ payable, $2,000; credit manufacturing​ overhead, $2,000
b. debit manufacturing​ overhead, $2,000; credit wages​ payable, $2,000
c. debit manufacturing​ overhead, $2,000; credit accounts​ payable, $2,000
d. debit wages​ payable, $2,000; credit manufacturing​ overhead, $2,000

Answer 1

The journal entry for this transaction is

b. debit manufacturing​ overhead, $2,000; credit wages​ payable, $2,000

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