A candy factory's employees work overtime to finish an order that is sold on February 28. The office sends a statement to the customer in early March and payment is received by mid-March.
The overtime wages should be expensed in:

a) February.
b) March.
c) the period when the workers receive their checks.
d) either in February or March depending on when the pay period ends.

a) February.

Explanation:

Since in the question it is mentioned that the candy factory employees worked overtime on the month of Fob so that they are able to finished the order i.e to be sold on Feb 28

But on the other hand, it is given that the statement is send on early of March and received the payment by mid of march but these information is not relevant as the workers worked overtime on the month of Feb.

Therefore, the overtime wages should be expended in Feb month as it is incurred on the same month and the revenues are recognized when they are earned

Hence, option a is correct

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