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

Question

Quizplus · Accepted Answer

Direct labor is recorded to Goods in Process as it is directly associated with the production of goods. Indirect labor is recorded to Factory Overhead as it is not directly traceable to specific products but is necessary for the production process.

Direct Labor and Indirect Labor Are Recorded,respectively,to