Minstrel Manufacturing uses a job order costing system. During the month, Minstrel purchased

$$198,000$ of raw materials on credit; issued materials to production of $$195,000$ of which $$30,000$

were indirect. Minstrel incurred a factory payroll of $$150,000,$ of which $$40,000$ was indirect labor.

Minstrel uses a predetermined overhead rate of $150\%$ of direct labor cost. The journal entry to record

the payment of the factory payroll is:

Multiple Choice

Debit Work in Process Inventory $$150,000$; credit Factory Wages Payable

$$150,000.$

Debit Work in Process Inventory $$150,000$; credit Cash $$150,000.$

Debit Factory Wages Payable $$150,000$; credit Cash $$150,000.$

Debit Factory Overhead $$40,000$; credit Factory Wages Payable $$40,000.$

Debit Work in Process Inventory $$110,000$; credit Cash $$150,000.$