The journal entry to record the use of direct labor in Processing Department #1 would include a credit to Wages Payable.

Question

Quizplus · Accepted Answer

Direct labor is a component of manufacturing overhead, and the processing department is responsible for converting raw materials into usable products. Therefore, the use of direct labor in Processing Department #1 should be recorded as an increase in manufacturing overhead and a corresponding credit to Wages Payable.

The Journal Entry to Record the Use of Direct Labor