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The Journal Entry to Record Direct Labour for Aztec Bromac

Question 87

Multiple Choice

The journal entry to record direct labour for Aztec Bromac is:


A)  Dr Work in Process Inventory $30,000 Dr Direct Labour Price Variance $1,000 Cr Wages Payable $31,000\begin{array} { l l } \text { Dr Work in Process Inventory } & \$ 30,000 \\ \text { Dr Direct Labour Price Variance } & \$ 1,000 \\\text { Cr Wages Payable }&\$31,000\end{array}
B)  Dr Wages Payable $30,000 Cr Direct Labour Price Variance $1,000 Cr Work in Process Inventory $29,000\begin{array}{ll}\text { Dr Wages Payable }&\$30,000\\\text { Cr Direct Labour Price Variance } & \$ 1,000 \\\text { Cr Work in Process Inventory } & \$ 29,000\end{array}
C)  Dr Work in Process Inventory $32,400 Cr Direct Labour Price Variance $1,000 Cr Direct Labour Efficiency Variance $8,400 Cr Wages Payable $26,000\begin{array} { l l l } \text { Dr Work in Process Inventory } & \$ 32,400 \\\text { Cr Direct Labour Price Variance } & \$ 1,000 & \\\text { Cr Direct Labour Efficiency Variance } & \$ 8,400 \\\text { Cr Wages Payable } & \$ 26,000\end{array}
D)  Dr Work in Process Inventory $32,400 Cr Direct Labour Price Variance $2,000 Cr Direct Labour Efficiency Variance $8,400 Cr Accounts Payable $26,000\begin{array}{ll}\text { Dr Work in Process Inventory } & \$ 32,40 0\\\text { Cr Direct Labour Price Variance } & \$ 2,000\\\text { Cr Direct Labour Efficiency Variance }&\$8,400\\\text { Cr Accounts Payable }&\$26,000\end{array}

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