In a job-order costing system, direct labor costs usually are recorded initially with a debit to:
A) Manufacturing Overhead.
B) Finished Goods inventory.
C) Direct Labor Expense.
D) Work in Process.

Question

Quizplus · Accepted Answer

Direct labor costs are a part of the cost of producing a specific job or order. Therefore, these costs are initially recorded in the Work in Process account, which is used to collect all costs of production until the job is completed. A debit to the Work in Process account increases the balance, reflecting the additional cost incurred for the job.

In a Job-Order Costing System, Direct Labor Costs Usually Are