In entries to record the movement of material, labor, and overhead through the operation of a company, the credit is the destination and the debit is the source.

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In accounting entries for the movement of materials, labor, and overhead, the debit typically represents the destination (e.g., Work in Process account) where costs are being transferred to, and the credit represents the source (e.g., Raw Materials Inventory, Wages Payable) from where the costs are coming from.

In Entries to Record the Movement of Material, Labor, and Overhead