Question 5

5pts

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?

Choose one answer:

1. Credit Wage Payable $750, Debit WIP $700, Debit Manufacturing overhead $50.
2. Credit Wage Payable $750, Debit WIP $600, Debit Manufacturing overhead $150.
3. Credit Wage Payable $750, Debit WIP $750.
4. Credit Wage Payable $600, Credit other expenses $150, Debit WIP $750.