Kline Manufacturing has the following labor costs: $\begin{array}{lr}
\text { Factory-Gross wages } & \$ 490,000 \
\text { Factory-Net wages } & 420,000 \
\text { Employer Payroll Taxes Payable } & 50,000
\end{array}$ The entry to record the cost of factory labor and the associated payroll tax expense will include a debit to Factory Labor for
A)$540,000.
B)$490,000.
C)$470,000.
D)$440,000.

Question

Quizplus · Accepted Answer

The debit to Factory Labor should include both the gross wages and the employer payroll taxes payable, totaling $490,000 + $50,000 = $540,000.

Kline Manufacturing Has the Following Labor Costs The Entry to Record the Cost of Factory Labor and wages