The following events took place at a manufacturing company for the current year:

1. (1) Purchased $95,000 in direct materials.

2. (2) Incurred labor costs as follows: (a) direct, $56,000 and (b) indirect, $13,600.

3. (3) Other manufacturing overhead was $107,000, excluding indirect labor.

4. (4) Transferred 80% of the materials to the manufacturing assembly line.

5. (5) Completed 65% of the Work-in-Process during the year.

6. (6) Sold 85% of the completed goods.

7. (7) There were no beginning inventories.

What is the journal entry to record the direct labor costs for the period?

A.	Labor Inventory	xxx
	Wages Payable		xxx

B.	Work-In-Process Inventory	xxx
	Wages Payable		xxx

C.	Manufacturing Overhead Control	xxx
	Wages Payable		xxx

D.	Wages Expense	xxx
	Cash		xxx

Option A

Option B

Option C

Option D