Juarez Builders Incurred $285,000 of Labor Costs for Construction Jobs

Multiple Choice

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 direct labor for the month is:

A) Debit Payroll Expense $212,000; credit Cash $212,000.
B) Debit Factory Wages Payable $285,000; credit Work in Process Inventory $212,000.
C) Debit Work in Process Inventory $212,000; credit Cash $285,000.
D) Debit Work in Process Inventory $285,000; credit Factory Wages Payable $285,000.
E) Debit Work in Process Inventory $212,000; credit Factory Wages Payable $212,000.