Question

The entry to record the flow of direct labor costs into production in a job order cost accounting system is to _____.

a. debit Factory Overhead, credit Work in Process
b. debit Finished Goods, credit Wages Payable
c. debit Work in Process, credit Wages Payable
d. debit Factory Overhead, credit Wages Payable

Answer 1

c. debit Work in Process, credit Wages Payable

Step-by-step explanation:

In the process costing all the direct expenses are recorded in work in process account and all the indirect expenses are recorded in Manufacturing overheads account.

Direct labor cost will be recorded in the work in process account and a liability will be created against this cost as wages payable.