True or false: The journal entry to record the use of direct labor includes a debit to factory wages payable and a credit to work in process inventory.True false question.TrueFalse
Question
True or false: The journal entry to record the use of direct labor includes a debit to factory wages payable and a credit to work in process inventory.True false question.TrueFalse
Solution
False. The journal entry to record the use of direct labor includes a debit to Work in Process Inventory and a credit to Factory Wages Payable. This is because the use of direct labor increases the value of the work in process inventory (hence the debit) and decreases the company's liabilities for wages payable (hence the credit).
Similar Questions
The recording of direct labor will result in a:Multiple choice question.debit to Work in Process Inventory and credit Factory Wages Payabledebit to Factory Overhead and a credit Work in Process Inventorydebit to Work in Process Inventory and a credit Factory Overheaddebit to Factory Wages Payable and a credit to Work in Process Inventory
The journal entry to record the allocation of factory overhead to work in process is:Multiple choice question.debit Work in Process Inventory and credit Cashdebit Cash and credit Factory Overheaddebit Work in Process Inventory and credit Factory Overheaddebit Factory Overhead and credit Work in Process Inventory
Multiple Choice QuestionThe journal entry to record indirect materials in production is to:Multiple choice question.debit Factory Overhead and credit Raw Materials Inventorydebit Work in Process Inventory and credit Factory Overheaddebit Raw Materials Inventory and credit Work in Process Inventorydebit Work in Process Inventory and credit Raw Materials Inventory
Since manufacturing costs (direct materials, direct labor, and overhead) are incurred in the process of manufacturing units of product, these costs are recorded in entries that include debits to:Multiple ChoiceThe Direct Materials Inventory, Direct Labor, and Manufacturing Overhead accounts.Expense accounts.The Work in Process Inventory account.
The following journal entry would be made to record the use of $6,100 of direct labor in aproduction department during the reporting period:
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