The journal entry to record incurred direct labor would include a credit to:
A)Work-in-Process Inventory.
B)Accrued Payroll.
C)Factory Overhead.
D)Materials Inventory.
E)Finished Goods Inventory.

Question

Quizplus · Accepted Answer

Direct labor costs are recorded as an increase in the Accrued Payroll account, which represents the amount of wages earned by employees but not yet paid. This account is credited when recording the incurred direct labor cost, as it represents a liability to the company until the wages are paid.

The Journal Entry to Record Incurred Direct Labor Would Include