Flying High 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?
A)Wages Payable
B)Manufacturing Overhead
C)Raw Materials Inventory
D)WIP Inventory-Molding

Question

Quizplus · Accepted Answer

Direct labor used during the molding process should be credited to Wages Payable, as this account tracks the amount owed to employees for their time worked. Manufacturing Overhead tracks indirect costs, Raw Materials Inventory tracks materials used, and WIP Inventory-Molding tracks the in-process inventory during the molding stage, but none of these accounts specifically relate to direct labor wages.

Flying High Manufacturing Produces Frisbees Using a Three-Step Process That