Question

When Factory Wages Payable costs for labor are allocated in a job cost accounting system: rev: 11_27_2015_QC_CS-34722 Multiple Choice Factory Wages Payable is debited and Work in Process Inventory is credited. Work in Process Inventory and Factory Overhead are debited and Factory Wages Payable is credited. Cost of Goods Manufactured is debited and Direct Labor is credited. Direct Labor and Indirect Labor are debited and Factory Wages Payable is credited. Work in Process Inventory is debited and Factory Overhead is credited.

Answer 1

When Factory Wages Payable costs for labor are allocated in a job cost accounting system:

Direct Labor and Indirect Labor are debited and Factory Wages Payable is credited.

Step-by-step explanation:

The Factory Wages Payable costs will always be allocated to direct labor or indirect labor. These two accounts will, therefore, be debited while Factory Wages Payable is credited for these unpaid factory wages at the end of the accounting period.