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

Question

Quizplus · Accepted Answer

Direct labour costs are initially recorded with a debit to the Work in Process account in a job-order costing system. This is because direct labour is one of the three primary costs involved in producing a product, along with direct materials and manufacturing overhead. As direct labour is incurred, it is added to the Work in Process account, which represents the cost of unfinished products that are still being worked on. Once the product is completed, the total cost is transferred to the Finished Goods inventory account.

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