Direct labor and indirect labor are recorded,respectively,to:
A)Factory Overhead and Work in Process Inventory.
B)Work in Process Inventory and Finished Goods Inventory.
C)Finished Goods Inventory and Work in Process Inventory.
D)Work in Process Inventory and Factory Overhead.
E)Cost of Goods Sold and Finished Goods Inventory.

Question

Quizplus · Accepted Answer

Direct labor is recorded to Work in Process Inventory while indirect labor is recorded to Factory Overhead. Therefore, the best choice is D where direct labor is correctly recorded to Work in Process Inventory and indirect labor is correctly recorded to Factory Overhead.

Direct Labor and Indirect Labor Are Recorded,respectively,to