The Employee Time Card for John Winter Indicates That He

question 4

Multiple Choice

The employee time card for John Winter indicates that he spent last week performing routine maintenance on factory machinery.Payments made to Winter for last week's work should be:

• A)Debited to Work in Process Inventory.
• B)Credited to the Direct Labor account.
• C)Debited to the Direct Labor account.
• D)Debited to the Manufacturing Overhead account.

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Definitions:

Service Cost

The actuarial present value of benefits earned by employees during a given period, included in the calculation of pension expense.

Actuarial Present Value

A calculation used to determine the present value of a future series of payments or receipts, taking into account variables such as mortality, investment earnings, and expense risks.

Net Periodic Pension Cost

The net periodic pension cost is the total expense recognized in a period related to an employer's pension plan, including service costs, interest costs, expected returns on plan assets, and any amortizations.