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

Question

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Direct labour is a cost incurred during the manufacturing process and is recorded as a debit to Work in Process (WIP) Inventory account. The corresponding credit to the Wages Payable account represents the liability owed to the employees for their work. Therefore, the journal entry to record the use of direct labour in Processing Department #1 would include a credit to Wages Payable.

The Journal Entry to Record the Use of Direct Labour