The journal entry to record the flow of costs into Department 2 for direct labor is
A) Work in Process-Department 2 65,000
Wages Payable 65,000
B) Wages Payable 65,000
Work in Process-Department 2 65,000
C) Work in Process-Department 2 125,000
Wages Payable 125,000
D) Work in Process-Department 2 185,000
Wages Payable 185,000

Question

Quizplus · Accepted Answer

The correct journal entry to record the flow of direct labor costs into a specific department (Department 2 in this case) involves debiting the Work in Process account for that department and crediting Wages Payable. This reflects the increase in production costs due to labor and the corresponding liability to pay wages. The specific amounts are not provided in the question, so the explanation is based on the structure of the entry rather than the exact figures.

The Journal Entry to Record the Flow of Costs into Department