In a job-order costing system,direct labour costs are usually recorded initially with a debit to:
A) Manufacturing Overhead.
B) Finished Goods inventory.
C) Direct Labour Expense.
D) Work in Process.

Question

Quizplus · Accepted Answer

In a job-order costing system, direct labour costs are initially recorded with a debit to Work in Process. This is because direct labour is a direct cost of the production process and contributes to the progress of the specific job or order being worked on. The Work in Process account is used to accumulate all direct costs associated with a specific job or order.

In a Job-Order Costing System,direct Labour Costs Are Usually Recorded