Portside Watercraft Uses a Job Order Costing System

Multiple Choice

Portside Watercraft uses a job order costing system.During one month Portside purchased $153,000 of raw materials on credit;issued materials to production of $164,000 of which $24,000 were indirect.Portside incurred a factory payroll of $95,000,paid in cash,of which $25,000 was indirect labor.Portside uses a predetermined overhead rate of 170% of direct labor cost.The journal entry to record the allocation of factory payroll to production is:

A) Debit Work in Process Inventory $95,000;credit Factory Payroll $95,000.
B) Debit Work in Process Inventory $95,000;credit Cash $95,000.
C) Debit Factory Payroll $95,000;credit Cash $95,000.
D) Debit Work in Process Inventory $70,000;debit Factory Overhead $25,000;credit Factory Payroll $95,000.
E) Debit Work in Process Inventory $70,000;debit Factory Overhead $25,000;credit Cash $95,000.