If Grayson Manufacturing incurred $17,400 for direct labor in the assembly department and $10,300 for direct labor in the painting department, the journal entry to record the labor used is:
$\begin{array}{llr}
\text { Work in Process Inventory, Assembly } &\$17,400\
\text { Work in Process Inventory, Painting } &\$10,300\
\text { Raw Materials Inventory } &&\$27,700
\end{array}$

Question

If Grayson Manufacturing incurred $17,400 for direct labor in the assembly department and $10,300 for direct labor in the painting department, the journal entry to record the labor used is:
$\begin{array}{llr}
  \text { Work in Process Inventory, Assembly } &\$17,400\
 \text { Work in Process Inventory, Painting } &\$10,300\
 \text { Raw Materials Inventory } &&\$27,700
\end{array}$

Quizplus · Accepted Answer

The journal entry should debit Work in Process Inventory accounts for both departments and credit Wages Payable or Cash, not Raw Materials Inventory, as it involves labor costs, not materials.

If Grayson Manufacturing Incurred $17,400 for Direct Labor in the Assembly