Esposito, Inc B) $$\begin{array} { | c | l | l | } \hline \text { Conversion Costs } & 708,000 & \\\hline \text { Wages Payable } & & 708,000 \\\hline\end{array}$$

Multiple Choice

Esposito, Inc. uses a just-in-time costing system. During the month, Esposito incurred $700,000 as direct labor and $8000 as overhead. Wages were not paid. Which of the following is the correct journal entry to record the conversion costs?

A) $$\begin{array} { | l | l | l | } \hline \text { Conversion Costs } & 708,000 & \\\hline \text { Wages Payable, Accumulated Depreciation, etc. } & & 708,000 \\\hline\end{array}$$
B) $$\begin{array} { | c | l | l | } \hline \text { Conversion Costs } & 708,000 & \\\hline \text { Wages Payable } & & 708,000 \\\hline\end{array}$$
C) $$\begin{array} { | c | l | l | } \hline \text { Manufacturing Overhead } & 708,000 & \\\hline \text { Conversion Costs } & & 708,000 \\\hline\end{array}$$
D) $$\begin{array} { | c | l | l | } \hline \text { Conversion Costs } & 708,000 & \\\hline \text { Accounts Payable } & & 708,000 \\\hline\end{array}$$