Ellis Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year:

Raw materials purchased on account $475,000

Raw materials (all direct) requisitioned for use in production $476,000

Direct labor cost $640,000

Manufacturing overhead: Indirect labor cost $174,000

Other manufacturing overhead costs incurred $498,000

Cost of goods manufactured $1,469,000

Cost of goods sold (unadjusted) $1,430,000

What is the journal entry to record the direct and indirect labor costs incurred during the year?

A.

Dr Work in Process................................	640,000
Dr Manufacturing Overhead....................	174,000
Cr Wages Payable......................		(814,000)

B.

	Dr Direct Labor.......................................	640,000
	Dr Manufacturing Overhead....................	174,000
	Cr Wages Payable...........................		(814,000)

C.

Dr Wages Payable..................................	814,000
Cr Work in Process..........................		(640,000)
Cr Manufacturing Overhead..............		(174,000)

D.

	Dr Wages Payable..................................	814,000
	Cr Direct Labor.................................		(640,000)
	Cr Manufacturing Overhead..............		(174,000)