A credit to _____ would be part of the entry to record the incurrence of direct labor costs.
A)Accrued Payroll
B)WIP Inventory
C)Finished-Goods Inventory
D)Cost of Goods Sold

Question

Quizplus · Accepted Answer

A credit to Accrued Payroll would be made to record the incurrence of direct labor costs as it reflects an increase in the amount owed to employees for their work, which is a liability account. WIP Inventory, Finished-Goods Inventory, and Cost of Goods Sold are all related to the production cycle but do not specifically account for the incurrence of direct labor costs.

A Credit to _____ Would Be Part of the Entry