When recording direct labor incurred in the production process, which of the following shows the effect on work in process inventory?
A) Debited for standard quantity for actual production times standard cost per hour
B) Credited for standard quantity usage for actual production times actual cost per hour
C) Debited for actual quantity times standard cost per hour
D) Credited for standard quantity for actual production times standard cost per hour

Question

Quizplus · Accepted Answer

When recording direct labor, work in process inventory is debited for the standard quantity for actual production times the standard cost per hour, reflecting the standard cost accounting approach.

When Recording Direct Labor Incurred in the Production Process, Which