The journal entry to assign $1,500 of direct labour and $200 of indirect labour involves a debit to

Question

Quizplus · Accepted Answer

Direct labour is recorded as a debit to Work in Process Inventory, while indirect labour is recorded as a debit to Manufacturing Overhead. Therefore, for the given journal entry, $1,500 of direct labour should be debited to Work in Process Inventory, and $200 of indirect labour should be debited to Manufacturing Overhead. The correct entry will be a debit to Work in Process Inventory for $1,500 and a debit to Manufacturing Overhead for $200. Hence, the answer is D.

The Journal Entry to Assign $1,500 of Direct Labour and $200