Direct materials and direct labor costs are debited to the Factory Overhead account in a job costing system.

Name: Direct materials and direct labor costs are debited to the Factory Overhead account in a job costing system.
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Question

Quizplus · Accepted Answer

Direct materials and direct labor costs are not debited to the Factory Overhead account, they are instead recorded directly to the job cost sheet. The Factory Overhead account is debited with indirect manufacturing costs, such as utilities and rent.

Direct Materials and Direct Labor Costs Are Debited to the Factory