Asked by bentley romanski on Jun 11, 2024
Verified
When recording the direct labor costs, the Work in Process inventory account will increase (decrease) by:
A) ($292,855)
B) $286,740
C) $292,855
D) ($286,740)
Work in Process
Inventory items that are partially completed but require further work before they are ready for sale to customers.
Direct Labor Costs
Expenses related to the wages of employees who are directly involved in the production of goods or services.
- Comprehend the effects that transactions have on the Work in Process inventory account.
Verified Answer
MM
Michelle MartinezJun 16, 2024
Final Answer :
B
Explanation :
Work in Process increases by the standard cost of the standard amount of hours allowed for the actual output, which is SH × SR = (17,700 units × 0.90 hours per unit)× $18.00 per hour = 15,930 hours × $18.00 per hour = $286,740.
Learning Objectives
- Comprehend the effects that transactions have on the Work in Process inventory account.
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