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The following events took place at a manufacturing company for the current year: (1) Purchased $95,000 in direct materials. (2) Incurred labor costs as follows:

The following events took place at a manufacturing company for the current year:

(1) Purchased $95,000 in direct materials.

(2) Incurred labor costs as follows: (a) direct, $56,000 and (b) indirect, $13,600.

(3) Other manufacturing overhead was $107,000, excluding indirect labor.

(4) Transferred 80% of the materials to the manufacturing assembly line.

(5) Completed 65% of the Work-in-Process during the year.

(6) Sold 85% of the completed goods.

(7) There were no beginning inventories.

What is the journal entry to record the direct labor costs for the period?

A.

Labor Inventory

xxx

Wages Payable

xxx

B.

Work-In-Process Inventory

xxx

Wages Payable

xxx

C.

Manufacturing Overhead Control

xxx

Wages Payable

xxx

D.

Wages Expense

xxx

Wages Payable

xxx

Option A

Option B

Option C

Option D

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