Fun Stuff Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Which of the following accounts is credited for direct labor used during the molding process?

Question

Quizplus · Accepted Answer

Direct labor costs during the molding process would be considered wages payable, making choice (A) the correct answer. Manufacturing overhead represents indirect costs associated with producing the frisbees, while raw materials inventory would be used for the materials needed in the molding process. WIP inventory-molding would represent the inventory of partially completed frisbees in the molding stage.

Fun Stuff Manufacturing Produces Frisbees Using a Three-Step Process That