The journal entry to record the flow of costs into Department 1 for direct labor is
A) Work in Process-Department 1 65,000
Wages Payable 65,000
B) Wages Payable 125,000
Work in Process-Department 1 125,000
C) Work in Process-Department 1 125,000
Wages Payable 125,000
D) Wages Payable 65,000
Work in Process-Department 1 65,000

Question

Quizplus · Accepted Answer

Direct labor costs should be recorded in the Work in Process account for the department where the labor was used. Therefore, the appropriate journal entry to record the flow of costs into Department 1 for direct labor is to debit Work in Process-Department 1 and credit Wages Payable for the same amount, which is $125,000. Choice C represents the correct account titles and amounts for this transaction.

The Journal Entry to Record the Flow of Costs into Department