CAF-5 · Chapter 5 · Question 4 of 10
Based on the cost flow of production, what is the initial journal entry to record the payment of wages to factory workers before the costs are allocated to production?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Debit: Salaries & Wages Control / Credit: Cash
Explanation
When wages are initially paid, the cost is captured in a control account. The entry is to Debit the Salaries & Wages Control account and Credit Cash/Bank.
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