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Brussels Products Began Its Belgian Operations on January 1

Question 75

Multiple Choice

Brussels Products began its Belgian operations on January 1. The following is the journal entry for the total payroll for January of €60,000: €40,000 paid to factory workers and €20,000 paid to marketing and administrative personnel:


A) Direct Labor Inventory . . . . . . . . . . . . . . . 40,000
Salaries Expense. . . . . . . . . . . . . . . . . . . . 20,000
Cash. . . . . . . . . . . . . . . . . . . . . . . . 60,000

B) Salaries Expense. . . . . . . . . . . . . . . . . . . 60,000
Cash. . . . . . . . . . . . . . . . . . . . . . . . 60,000

C) Work-in-Process Inventory. . . . . . . . . . . . . . 60,000
Cash. . . . . . . . . . . . . . . . . . . . . . . . 60,000

D) Work-in-Process Inventory. . . . . . . . .. . . . . . 40,000
Salaries Expense. . . . . . . . . . . . . . . . . . . . 20,000
Cash. . . . . . . . . . . . . . . . . . . . . . . 60,000

E) Work-in-Process Inventory . . . . . . . . . . . . . . 20,000
Salaries Expense . . . . . . . . .. . . . . . . . . . . 40,000
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . 60,000

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