Question

For a manufacturing company, direct labor costs may be included in:

a. Direct Materials Inventory only
b. Merchandise Inventory Only
c. Both Work in Process inventory and Finished Goods Inventory
d. Direct Materials Inventory, Work in Process Inventory and Finished Goods Inventory

Answer 1

Direct labor costs may be included in Direct Materials Inventory, Work in Process Inventory, and Finished Goods Inventory.

Step-by-step explanation:

For a manufacturing company, direct labor costs may be included in d. Direct Materials Inventory, Work in Process Inventory and Finished Goods Inventory. Direct labor costs refer to the wages and benefits paid to employees directly involved in the production process. These costs are considered a part of the manufacturing process and are allocated to the different inventory accounts.