The Journal Entry to Record Direct Labor Costs Actually Incurred

question 92

Multiple Choice

The journal entry to record direct labor costs actually incurred involves a debit to the ________.

• A) Work-in-Process Inventory account
• B) Wages Payable account
• C) Manufacturing Overhead account
• D) Raw Materials Inventory account

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Definitions:

Obligations

Legal or moral duties to perform or refrain from performing certain acts, often arising from contracts, laws, or ethical principles.

Owners

Individuals or entities that hold the legal right or title to property, possessions, or an entity.

Industry

A particular form or branch of economic or commercial activity.

Corporate Debt Instruments

Financial securities issued by corporations to borrow money, such as bonds and debentures.