During October,Crusan Corporation incurred $62,000 of direct labor costs and $4,000 of indirect labor costs.The journal entry to record the accrual of these wages would include a:

Question

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Direct labor costs are directly attributable to the production of goods, therefore the cost should be debited to Work in Process. Indirect labor costs are not directly attributable to the production of goods, so they should be expensed separately, not included in the Work in Process account. Therefore, the journal entry would be a debit to Work in Process for the direct labor costs of $62,000, and a separate credit to the Indirect Labor Expense account for the indirect labor costs of $4,000.

During October,Crusan Corporation Incurred $62,000 of Direct Labor Costs and $4,000