1. Portside Watercraft uses a job order costing system. During the 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 direct labor costs used in production is: Multiple Choice

Debit Work in Process Inventory $70,000; credit Accounts Receivable $70,000.

Debit Work in Process Inventory $70,000; credit Factory Wages Payable $70,000.

Debit Work in Process Inventory $95,000; credit Factory Wages Payable $95,000.

Debit Factory Wages Payable $70,000; credit Work in Process Inventory $70,000.

Debit Factory Wages Payable $95,000; credit Factory Overhead $95,000.

2.Which of the following costs is not included in factory overhead?

Multiple Choice

• Indirect labor.
• Direct materials.
• Depreciation of manufacturing equipment.
• Indirect materials.
• Repairs of factory equipment.