A debit balance in the Direct Labor account represents a liability for wages payable.

Name: A debit balance in the Direct Labor account represents a liability for wages payable.
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Question

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A debit balance in the Direct Labor account represents the amount of direct labor costs incurred and charged to the production process. It does not represent a liability for wages payable, which would be reflected in a separate account such as Wages Payable.

A Debit Balance in the Direct Labor Account Represents a Liability