Juarez 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:
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.