Oxford Company uses a job order costing system. In the last month, the system accumulated labor time tickets total $24.600 for direct labor and $4,300 for indirect labor. These costs were accumulated in Factory Payroll as they were paid, which entry should Oxford make to record the indirect labor used?
A) Debit Factory Overhead $4,300, credit Factory Wages Payable $28.900
B) Debit Payroll Expense 524.600credit Factory Wages Payable $28,900.
C) Debit Payroll Expense $28,900, credit Cash $28.900
D) Debit Work in Process Inventory $20,900 credit Factory Wages Payable $28.900.
E) Debit Work in Process Inventory $24600, credit Wages Payable $28.900

Job order costing is a technique to decide the expense of assembling every item.Debit Payroll Expense with 524.600 and credit Factory Wages Payable with $28,900.

What is job order costing system?

It is a costing technique which is utilized to decide the expense of assembling every item. This technique is used when the producer creates an assortment of items which are not same and necessities to ascertain the expense for making a singule Item.

Given:

Direct labor cost = $24,600

Indirect labor cost = $4,300

So while passing the general entry we will debit the payroll expense and credit the total factory wages (i.e. Direct as well as Indirect labor cost) with $28,900.

Therefore option B aptly describes the statement.

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