Question

Bob the accountant needs to record indirect labor utilized of $6,000 in a journal entry. Bob should:_____.

a. debit Manufacturing Overhead, $6,000; credit Wages Payable, $6.000.
b. debit Accounts Payable, $6,000; credit Manufacturing Overhead, $6,000.
c. debit Manufacturing Overhead, $6,000; credit Accounts Payable, $6,000.
d. debit Wages Payable, $6,000; credit Manufacturing Overhead, $6,000.

Answer 1

c. debit Manufacturing Overhead, $6,000; credit Accounts Payable, $6,000

Step-by-step explanation:

The journal to record indirect labor utilized of $6,000 will include a Debit to an Expense Account - Manufacturing Overhead and a Credit to Liability Account - Accounts Payable at the value of $6,000.