Direct labor and indirect labor are recorded, respectively, to:
A) Factory Overhead and Goods in Process Inventory.
B) Goods in Process Inventory and Finished Goods Inventory.
C) Finished Goods Inventory and Goods in Process Inventory.
D) Goods in Process Inventory and Factory Overhead.
E) Cost of Goods Sold and Finished Goods Inventory.

Question

Quizplus · Accepted Answer

Direct labor is recorded to Goods in Process Inventory while indirect labor is recorded to Factory Overhead. Therefore, only choice D correctly associates each type of labor with its respective account.

Direct Labor and Indirect Labor Are Recorded, Respectively, To