Indirect labour costs are initially recorded in the Work in Process account and on the job cost sheets of the individual jobs worked on during a period.

Question

Quizplus · Accepted Answer

Indirect labor costs are not directly traceable to specific jobs, so they are recorded as overhead and then allocated to jobs based on a predetermined overhead rate, not directly recorded in the Work in Process account or on the job cost sheets.

Indirect Labour Costs Are Initially Recorded in the Work in Process