The journal entry to record wages earned by assembly line workers would include a:
A)credit to Indirect Labor
B)debit to Manufacturing Overhead
C)debit to Work-in-Process Inventory
D)credit to Cost of Goods Manufactured

Question

Quizplus · Accepted Answer

Wages earned by assembly line workers are a direct labor cost and therefore are recorded as a debit to Work-in-Process Inventory. Indirect labor represents the cost of labor that is not directly involved in the production of a product, such as supervisors or janitorial staff, and Manufacturing Overhead includes indirect costs such as rent and utilities. Cost of Goods Manufactured is a temporary account used in the manufacturing process to track the total cost of goods produced.

The Journal Entry to Record Wages Earned by Assembly Line