Question

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: multiple choice debit supervisor wage expense; credit factory wages payable. debit factory overhead; credit factory wages payable. debit supervisor wage expense; credit factory overhead. debit factory wages payable; credit factory overhead. debit factory wage expense; credit cash

Explanation:

Indirect labor costs are part of factory overhead. When recording indirect labor, we debit the Factory Overhead account to accumulate these costs, and credit the Factory Wages Payable account as it represents an amount owed to employees.

Answer:

Debit Factory Overhead; credit Factory Wages Payable.