O'Hare Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. During the current accounting period, O'Hare paid $2,100 to production employees who worked on job #132. The entry to record these wages would include an increase to which of the following accounts?

Question

Quizplus · Accepted Answer

The wages paid to production employees who worked on a specific job are allocated to the Work in Process Inventory account in a job-order cost system. This account represents the costs of materials, labor, and overhead that are incurred during the production process but have not yet been completed or sold. Therefore, the entry would include a debit to Work in Process Inventory and a credit to Wage Expense. Options A, C, and D are incorrect because they do not reflect the fact that the wages are associated with a specific job, rather than with the cost of goods sold or finished goods inventory in general.

O'Hare Company, Is a Manufacturing Firm That Uses a Job-Order