During December, Fleeger Corporation incurred $51,000 of direct labor costs and $5,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a:

Question

Quizplus · Accepted Answer

Direct labor costs are directly traced to specific jobs and are debited to Work in Process, while indirect labor costs are not directly associated with specific jobs and are debited to Manufacturing Overhead. Therefore, the journal entry would include a debit to Work in Process for the $51,000 of direct labor costs, but not the $5,000 of indirect labor costs. The total amount debited to Work in Process would be $51,000.

During December, Fleeger Corporation Incurred $51,000 of Direct Labor Costs