7. Total factory labor cost is composed of direct labor and indirect labor 8. Direct labor cost is recorded by a debit to Work in Process account. 9. Payroll deductions are based on the gross earnings of the employee (regular earnings plus overtime pay).

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Please write TRUE if the statement is True. And if FALSE, WRITE THE CORRECT STATEMENT. 

7. Total factory labor cost is composed of direct labor and indirect labor
8. Direct labor cost is recorded by a debit to Work in Process account.
9. Payroll deductions are based on the gross earnings of the employe
(regular earnings plus overtime pay).
10. The amount debited to the Work in Process account represents the total
amount of direct labor (at regular rate) charged to the different jobs in
process.
Transcribed Image Text:7. Total factory labor cost is composed of direct labor and indirect labor 8. Direct labor cost is recorded by a debit to Work in Process account. 9. Payroll deductions are based on the gross earnings of the employe (regular earnings plus overtime pay). 10. The amount debited to the Work in Process account represents the total amount of direct labor (at regular rate) charged to the different jobs in process.
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