In October, Raddatz Incorporated incurred $73,000 of direct labor costs and $6,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a:
A) debit to Manufacturing Overhead of $6,000
B) debit to Work in Process of $79,000
C) credit to Manufacturing Overhead of $6,000
D) credit to Work in Process of $79,000

Question

Quizplus · Accepted Answer

Direct labor costs are debited to Work in Process, and indirect labor costs are debited to Manufacturing Overhead. Therefore, the correct entry includes a debit to Manufacturing Overhead for the indirect labor costs of $6,000.

In October, Raddatz Incorporated Incurred $73,000 of Direct Labor Costs