Question

During June, Buttrey Corporation incurred $85,000 of direct labor costs and $25,000 of indirect labor costs.
The journal entry to record the accrual of these wages would include a credit/debit to Work in Process of $_____.

Answer 1

Answer:

Explanation:

The journal entry is shown below:

Work in process A/c Dr $85,000

Manufacturing Overhead A/c Dr $25,000

           To Wages A/c

(Being the accrual wages are recorded)

The direct labor cost comes under the work in process account and the indirect labor cost comes under the manufacturing overhead account as it only records indirect cost and the sum of both is credited to the wages account