When the company assigns factory labor costs to jobs the direct labor cost is added to
A)Direct Labor.
B)Factory Labor.
C)Manufacturing Overhead.
D)Work in Process Inventory.

Question

Quizplus · Accepted Answer

Direct labor costs are added to Work in Process Inventory to capture the cost of labor used to produce a specific job. This is part of the process of assigning total manufacturing costs to jobs in order to determine the cost of goods sold and the gross profit for each job.

When the Company Assigns Factory Labor Costs to Jobs the Direct