XYZ company made the following entries in his books:

Items in Process 39,000

Indirect Control Costs 15,000

Cash 54,000

The correct explanation of this entry in a company that uses Job Order Cost System will be:

a. $ 54,000 of payroll was paid, of these $ 39,000 are direct labor

and $ 15,000 is considered indirect labor.

b. $ 54,000 in materials were compared in cash, of these $ 39,000 are

direct materials and $ 15,000 are indirect materials.

c. $ 54,000 were paid, of these $ 39,000 are direct materials and $ 15,000

indirect labor.

d. $ 54,000 was paid, of these $ 39,000 are direct labor and $ 15,000

They are made of indirect materials.