Portside Watercraft Uses a Job Order Costing System

Multiple Choice

Portside Watercraft uses a job order costing system.During one month Portside purchased $173,000 of raw materials on credit; issued materials to production of $164,000,of which $24,000 were indirect.Portside incurred a factory payroll cost of $95,000,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 wages to production is:

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