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uarez Builders incurred $ 2 8 5 , 0 0 0 of labor costs for construction jobs completed during the month of August, of which

uarez Builders incurred $285,000 of labor costs for construction jobs completed during the month of August, of which $212,000 was direct and $73,000 was indirect supervisory costs. The correct journal entry to record the $73,000 indirect labor for the month is:
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Debit Supervisor Wage Expense; credit Factory Wages Payable.
Debit Factory Overhead; credit Factory Wages Payable.
Debit Supervisor Wage Expense; credit Factory Overhead.
Debit Factory Wages Payable; credit Factory Overhead.
Debit Factory Wage Expense; credit Cash.

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