When Direct Labor Costs Are Recorded in a Job Costing

question 45

Multiple Choice

When direct labor costs are recorded in a job costing:

• A)Factory Wages Payable is debited and Work in Process Inventory is credited.
• B)Work in Process Inventory is debited and Factory Wages Payable is credited.
• C)Cost of Goods Manufactured is debited and Direct Labor is credited.
• D)Direct Labor and Indirect Labor are debited and Factory Wages Payable is credited.
• E)Work in Process Inventory is debited and Factory Overhead is credited.

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Definitions:

Certainty, risk, and uncertainty

Certainty, risk, and uncertainty are terms used to describe the predictability of outcomes, where certainty is knowing the outcome, risk involves potential loss, and uncertainty indicates unknown future outcomes.

Problem-solving decisions

The process of identifying a problem and determining the most effective course of action to resolve it.

Conviction

A firmly held belief or opinion, demonstrating a strong sense of certainty about something.

Complete certainty

Complete certainty is a condition where there is absolute confidence or assurance in knowledge, decision-making, or outcomes, without any doubt.