Question
Dreamland Ltd manufactures bed frames and mattresses that are custom-made to a person's height and weight. Last week, Steve Ow, a bed frame specialist, reported
Dreamland Ltd manufactures bed frames and mattresses that are custom-made to a person's height and weight. Last week, Steve Ow, a bed frame specialist, reported spending 35 hours working on a number of bed frames, including 5 hours overtime. Steve is paid $20 per hour ordinarily, and $30 per hour when working overtime. Which of the following journal entries are most appropriate to record and describe Steve's wages for the 35 hours?
Credit Wage Payable $600, Credit other expenses $150, Debit WIP $750.
Credit Wage Payable $750, Debit WIP $600, Debit Manufacturing overhead $150.
Credit Wage Payable $750, Debit WIP $700, Debit Manufacturing overhead $50.
Credit Wage Payable $750, Debit WIP $750.
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