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

Name: The journal entry to record the use of direct labor in Processing Department #1 would include a credit to Wages Payable.
Brand: Quizplus
Rating: 4.9 (50 reviews)

Question

Quizplus · Accepted Answer

Direct labor is an expense, and therefore is debited to the Processing Department #1 account. However, since it is a liability until it is paid, a credit to Wages Payable is also necessary.

The Journal Entry to Record the Use of Direct Labor