Concept explainers
Treatment of Direct Labor/ Indirect labor cost:
The labor used in the manufacturing process is in the form of direct labor (which is directly identified in the product) and indirect labor used (which is indirectly helped in production and not directly identified in the product). The Cost of Direct labor is charged directly to work in process inventory by debiting the in process account and crediting the wages payable/ cash account, as the case may be.
And the indirect labor issued is charged to manufacturing
Requirement:
The Journal entries for transactions relating to labor.
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MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Accounting
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