Refer to Triple M Corporation. Which of the following should be included in the journal entry to record labour?

Question

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Labour costs are typically allocated to Work-in-Process Inventory because they are directly related to the production of goods. Therefore, a debit to Work-in-Process Inventory of $750 should be included in the journal entry. Option A, debit to Wages Expense, would be incorrect because Wages Expense is an income statement account and should not be used to record activity in inventory accounts. Option B, debit to Finished Goods Inventory, would be incorrect because labour costs are incurred during the production (work-in-process) stage, not after goods have been completed and moved to finished goods inventory. Option C, credit to Finished Goods Inventory, would also be incorrect for the same reason as option B.