If the entry to assign factory labor showed only an increase to Work In Process Inventory then all labor costs were
A)direct labor.
B)indirect labor.
C)overtime related.
D)regular hours.

Question

Quizplus · Accepted Answer

If the entry only increases the Work in Process Inventory account, it means that the labor costs are directly related to the production of goods. Therefore, the labor costs are classified as direct labor.

If the Entry to Assign Factory Labor Showed Only an Increase