Final answer:
The statement is true; when direct-labor costs are incurred, they are indeed credited to the Work-in-Process Control account as part of the manufacturing process accounting entries.
Step-by-step explanation:
The statement that Work-in-Process Control will be decreased (credited) for the amount of direct-labor costs incurred is true. In accounting, when direct labor costs are incurred in the manufacturing process, they are added to the Work-in-Process Control account, which appears on the company's balance sheet as an asset. However, from the perspective of the accounting entry, the Work-in-Process Control account is credited (decreased) while the corresponding Wages Payable or Cash account (depending on whether the labor has been paid) is debited (increased) to reflect the incurrence of labor expenses.
The process represents the basic accounting principle of matching expenses with the revenue they help to generate. When direct labor is involved in making a product, these labor costs get allocated to the Work-in-Process Control account initially and later transferred to Finished Goods and eventually to Cost of Goods Sold when the product is sold.