In a job-order costing system, indirect labor cost is usually recorded as a debit to:
A) Manufacturing Overhead.
B) Finished Goods.
C) Work in Process.
D) Cost of Goods Sold.

Question

Quizplus · Accepted Answer

Indirect labor costs are considered manufacturing overhead because they cannot be easily traced to a specific product or job. Therefore, they are allocated to all the products manufactured during a certain period of time. Hence, the indirect labor cost is debited to the Manufacturing Overhead account.

In a Job-Order Costing System, Indirect Labor Cost Is Usually