In process costing,the journal entry to record direct labor costs incurred would include a ________.
A)debit to Accrued Payroll
B)credit to Factory Overhead
C)debit to Work-in-Process Inventory,Department Name
D)credit to Finished Goods Inventory

Question

Quizplus · Accepted Answer

Direct labor costs are a component of the cost of goods manufactured and therefore are debited to the Work-in-Process Inventory account. In process costing, it is necessary to keep track of the costs incurred in each department, so the journal entry should specify which department the costs were incurred in.

In Process Costing,the Journal Entry to Record Direct Labor Costs