A furniture factory's employees work overtime to finish an order that is sold on December 31. The office sends a statement to the customer in early January and payment is received by mid-February. The overtime wages should be expensed in:

a) Januaryb) Februaryc) The period when the worker receives their checksd) Either Jan or Feb depending on when the pay period end

Question

Business

Cooper Waller

4 November, 09:07

A furniture factory's employees work overtime to finish an order that is sold on December 31. The office sends a statement to the customer in early January and payment is received by mid-February. The overtime wages should be expensed in:

a) Januaryb) Februaryc) The period when the worker receives their checksd) Either Jan or Feb depending on when the pay period end

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Answers (1)

Know the Answer?

Alfredo Hawkins · Answer 1

Correct answer is (a) January

Explanation:

The overtime wages should be expensed in January because the overtime wage payment should be made from the company account and not base on the customer payment to the company.