Travers Manufacturing incurred $106,000 of direct labor and $11,000 of indirect labor. The proper journal entry to record these events would include a debit to Work in Process for:
A) $0 because Work in Process should be credited.
B) $0 because Work in Process is not affected.
C) $11,000.
D) $106,000.
E) $117,000.

Question

Quizplus · Accepted Answer

Direct labor costs are debited to the Work in Process account because they are directly attributable to the production of goods. Indirect labor costs are not debited to Work in Process; instead, they are typically debited to Manufacturing Overhead.

Travers Manufacturing Incurred $106,000 of Direct Labor and $11,000 of Indirect