When Factory Wages Payable costs for labor are allocated in a job cost accounting system:
A) Cost of Goods Manufactured is debited and Direct Labor is credited.
B) Factory Wages Payable is debited and Work in Process Inventory is credited.
C) Work in Process Inventory is debited and Factory Overhead is credited.
D) Work in Process Inventory and Factory Overhead are debited and Factory Wages Payable is credited.
E) Direct Labor and Indirect Labor are debited and Factory Wages Payable is credited.

Question

Quizplus · Accepted Answer

In a job cost accounting system, when factory wages payable are allocated, the Work in Process Inventory and Factory Overhead accounts are debited for direct and indirect labor costs, respectively, and Factory Wages Payable is credited.

When Factory Wages Payable Costs for Labor Are Allocated in a Job