When direct labor costs are incurred in the Mixing Department, the journal entry to record the transaction includes a

Question

Quizplus · Accepted Answer

Direct labor costs incurred in the Mixing Department are a part of the manufacturing process and are therefore debited to Work in Process, Mixing Department. This is because direct labor is a part of the production process and is considered a manufacturing cost. The other options, such as crediting Manufacturing Overhead or Wages Payable, are not appropriate for recording direct labor costs in the Mixing Department.

When Direct Labor Costs Are Incurred in the Mixing Department