Cafferty Corporation has provided the following data concerning its direct labor costs for March: The journal entry to record the incurrence of direct labor costs in March would include the following for Work in Process:
A)Credit of $33,280
B)Debit of $35,625
C)Debit of $33,280
D)Credit of $35,625

Question

Cafferty Corporation has provided the following data concerning its direct labor costs for March:  The journal entry to record the incurrence of direct labor costs in March would include the following for Work in Process:
A)Credit of $33,280 
B)Debit of $35,625 
C)Debit of $33,280 
D)Credit of $35,625

Quizplus · Accepted Answer

Work in process would be debited for the standard labor cost of the actual output which is
1.3 DLHs per unit × $12.80 per DLH × 2,000 units = $33,280

Cafferty Corporation Has Provided the Following Data Concerning Its Direct