Direct labor costs of $10,000 and indirect labor costs of $1,500 associated with a job are recorded on the job cost sheet with a corresponding debit to Work in Process for $11,500.

Question

Quizplus · Accepted Answer

Direct labor costs are recorded on the job cost sheet and debited to Work in Process, but indirect labor costs are not directly debited to Work in Process; they are typically recorded as part of manufacturing overhead.

Direct Labor Costs of $10,000 and Indirect Labor Costs of $1,500