In a job-order costing system, direct labour costs are usually recorded initially with a debit to:
A)Finished Goods inventory.
B)Manufacturing Overhead.
C)Direct Labour Expense.
D)Work in Process.

Question

Quizplus · Accepted Answer

Direct labour costs are initially recorded in a job-order costing system with a debit to the Work in Process account. This is because direct labour is a cost of producing the specific job or product, and it increases the value of the Work in Process inventory as the job progresses.

In a Job-Order Costing System, Direct Labour Costs Are Usually