Work-in-Process is credited and Payroll is debited when direct labor is charged to production.

Name: Work-in-Process is credited and Payroll is debited when direct labor is charged to production.
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Question

Quizplus · Accepted Answer

When direct labor is charged to production, Work-in-Process is debited (increased) to reflect the cost of labor being added to the production process, and Payroll or Wages Payable is credited (increased) to reflect the obligation to pay the workers.

Work-In-Process Is Credited and Payroll Is Debited When Direct Labor