In October,Raddatz Inc.incurred $73,000 of direct labor costs and $6,000 of indirect labor costs.The journal entry to record the accrual of these wages would include a:
A) debit to Manufacturing Overhead of $6,000
B) debit to Work in Process of $79,000
C) credit to Manufacturing Overhead of $6,000
D) credit to Work in Process of $79,000

Question

Quizplus · Accepted Answer

Direct labor costs are charged to Work in Process, while indirect labor costs are charged to Manufacturing Overhead. Therefore, the debit to Manufacturing Overhead reflects the allocation of indirect labor costs.