When Factory Payroll Costs Are Recorded in a Job Cost

Multiple Choice

When factory payroll costs are recorded in a job cost accounting system:

A) Factory Payroll is debited and Goods in Process is credited.
B) Goods in Process Inventory and Factory Overhead are debited and Factory Payroll is credited.
C) Cost of Goods Manufactured is debited and Direct Labor is credited.
D) Direct Labor and Indirect Labor are debited and Factory Payroll is credited.
E) Goods in Process is debited and factory payroll is credited.