Castanada Corporation has provided the following data concerning its direct labor costs for August:
-The journal entry to record the incurrence of direct labor costs in August would include the following for Work in Process:
A) Debit of $222,768
B) Credit of $264,768
C) Credit of $222,768
D) Debit of $264,768

Question

Castanada Corporation has provided the following data concerning its direct labor costs for August: 
-The journal entry to record the incurrence of direct labor costs in August would include the following for Work in Process:
A) Debit of $222,768 
B) Credit of $264,768 
C) Credit of $222,768 
D) Debit of $264,768

Quizplus · Accepted Answer

Direct labor costs are debited to Work in Process as they are incurred, reflecting the increase in production costs.

Castanada Corporation Has Provided the Following Data Concerning Its Direct