The Journal Entry to Record the Cost of Direct Labor

question 123

Multiple Choice

The journal entry to record the cost of direct labor used in this period includes:

• A) A debit to Work-In-Process Inventory of $2,880.
• B) A debit to Work-In-Process Inventory of $2,560.
• C) A credit to Direct Labor Rate Variance of $320.
• D) A debit to Direct Labor Rate Variance of $360.

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Definitions:

Processing Methods

Various techniques or approaches used in the handling, preparation, or processing of materials or data.

Computerized Accounting System

An accounting information system that processes financial transactions and events as per GAAP (Generally Accepted Accounting Principles) using computer software.

Systems Design

The process of defining the architecture, components, interfaces, and data for a system to satisfy specified requirements.

Income Statement

A financial report that shows a company's revenues, expenses, and profits over a specific accounting period.