The Entry to Record the Flow of Direct Labor Costs

question 123

Multiple Choice

The entry to record the flow of direct labor costs into production in a job order cost accounting system is:

• A) debit Factory Overhead, credit Work in Process
• B) debit Finished Goods, credit Wages Payable
• C) debit Work in Process, credit Wages Payable
• D) debit Factory Overhead, credit Wages Payable

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Definitions:

Income

Money received, especially on a regular basis, for work or through investments.

Market

A place or system where buyers and sellers interact to exchange goods, services, or information, often determined by supply and demand.

Negotiation

The process of discussion aimed at reaching an agreement or compromise between two or more parties.

Win-lose

A situation or outcome in which one party's gain results directly from another party's loss, often seen in competitive or adversarial scenarios.