The cost of indirect labor will initially be charged to:
A) Cost of Goods Sold.
B) Finished Goods Inventory.
C) Manufacturing Overhead.
D) Wages Expense.

Question

Quizplus · Accepted Answer

Indirect labor is a component of manufacturing overhead, which includes all manufacturing costs other than direct materials and direct labor. Therefore, the cost of indirect labor should be initially charged to the Manufacturing Overhead account.

The Cost of Indirect Labor Will Initially Be Charged To