Embark produces mulch for landscaping use.The following information summarizes production operations for June.The journal entry to record June production activities for direct labor usage is:

Question

Quizplus · Accepted Answer

The journal entry to record direct labor usage in production activities is to debit Goods in Process Inventory, which represents the cost of unfinished products, and credit Factory Payroll, representing the wages paid to direct laborers. Therefore, option B is correct as it debits Goods in Process Inventory $160,000 and credits Factory Payroll $160,000. Option A, E and C are incorrect as they do not include the correct accounts in the entry. Option D is also incorrect as it suggests a transaction between Goods in Process Inventory and Raw Materials Inventory, which does not represent the usage of direct labor in production.

Embark Produces Mulch for Landscaping Use