The following partially completed T-accounts summarize last year's transactions for Kelshaw Company:At the end of the year, the company closes out the balance in the Manufacturing Overhead account to Cost of Goods Sold.
-What is the indirect labour cost?
A) $5,000.
B) $12,000.
C) $15,000.
D) $35,000.

Question

The following partially completed T-accounts summarize last year's transactions for Kelshaw Company:At the end of the year, the company closes out the balance in the Manufacturing Overhead account to Cost of Goods Sold.
-What is the indirect labour cost?
A) $5,000. 
B) $12,000. 
C) $15,000. 
D) $35,000.

Quizplus · Accepted Answer

Indirect labor cost refers to wages paid to employees who are not directly involved in the production of goods or services, such as supervisors and maintenance workers. Without additional context or details, it's impossible to provide a specific explanation for why $5,000 is the correct answer. This response assumes familiarity with the details of a scenario not provided here.

The Following Partially Completed T-Accounts Summarize Last Year's Transactions for Kelshaw