Jacob Company Incurred $7,000 for Indirect Labor in Department III

Multiple Choice

Jacob Company incurred $7,000 for indirect labor in Department III. The journal entry to record indirect labor utilized is:

A) debit Manufacturing Overhead, $7,000; credit Accounts Payable, $7,000.
B) debit Accounts Payable, $7,000; credit Manufacturing Overhead, $7,000.
C) debit Manufacturing Overhead, $7,000; credit Wages Payable, $7,000.
D) debit Wages Payable, $7,000; credit Manufacturing Overhead, $7,000.