Question

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

Answer 1

Correct answer is (a) January

Step-by-step 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.