Which of the following internal controls most likely would prevent direct labor hours from being charged to manufacturing overhead?

Question

Quizplus · Accepted Answer

Choice "C" is correct. The use of time tickets to record actual labor worked on production orders is the best way to prevent direct labor from being charged to manufacturing overhead. Choice "A" is incorrect. The work-in-process inventory contains not only labor, but also materials and overhead. Choice "B" is incorrect. Daily journal entries are made to record the use of labor and materials. Reconciliation of the amount of daily labor to approved production orders would not prevent direct labor from being charged to manufacturing overhead. Choice "D" is incorrect. The work-in-process inventory contains not only labor, but also materials and overhead.

Which of the Following Internal Controls Most Likely Would Prevent