Question

To record direct labour costs incurred, which of the following would be debited?

(a) Finished goods inventory (b) Manufacturing overhead

(c) Work in process (d) Wages payable​

Answer 1

To record direct labour costs incurred, which of the following would be debited?

Work in process

Answer 2

C) Work in process would be debited to record direct labour costs.

Explanation about direct labours:

• A employees individually concerned in production a goods are called as direct labours.
• Examples includes of manufacturing-line labours, repairers and lawn-mowing team members.
• All others, inclusive of administrative, custodial and warehouse workforce, are oblique labor and categorized as overhead.
• GAAP matching tips require that each be absorbed into the value of the products to permit for recording the charges of doing enterprise in the equal time because the income they generate.
• Direct labor, along side direct products, is a top or direct manufacturing value, even as indirect labor is an overhead expense.

Direct labours accounts:

• Direct labor should pursue costs from the begin of manufacturing till the period of sale, it's miles essential to the work-in-process, completed items and the cost-of-items-sold accounts.
• Accounting begins with a debit to the work-in-process stock account and a credit score to wages payable.
• As work pass via the manufacturing line, a debit to the completed items account and a credit score to work-in-procedure, and a debit to value-of-items offered and a credit score the completed items account completes the method.
• The stability sheet consists of work-in-process and completed items stock prices, and the earnings declaration consists of the value of products offered.

Thus, C) Work in process would be debited to record direct labour costs incurred.