Which account would be credited if the following labor wages were incurred in a furniture manufacturing company?

A) Work-in-Process Control, 31,000
B) Manufacturing Overhead Control, 31,000
C) Wages Payable Control, 31,000
D) Accounts Payable Control, 31,000

Question

Which account would be credited if the following labor wages were incurred in a furniture manufacturing company?

A) Work-in-Process Control, 31,000 
B) Manufacturing Overhead Control, 31,000 
C) Wages Payable Control, 31,000 
D) Accounts Payable Control, 31,000

Quizplus · Accepted Answer

Labor wages are considered as an expense for the company and therefore increase the liability of the company towards its employees. As a result, the Wages Payable Control account will be credited in order to record the increase in liability. Work-in-Process Control and Manufacturing Overhead Control accounts are used to record the cost of manufacturing goods, and Accounts Payable Control account is used to track the company's liability towards its suppliers. Therefore, none of these accounts would be appropriate to be credited in this scenario.

Which Account Would Be Credited If the Following Labor Wages