Asked by Trinhh Ph??ngg on Jun 18, 2024
Verified
In a job-order costing system, indirect labor cost is usually recorded as a debit to:
A) Manufacturing Overhead.
B) Finished Goods.
C) Work in Process.
D) Cost of Goods Sold.
Job-Order Costing
An accounting method that tracks costs individually for each job, suitable for manufacturing jobs that are distinct and not identical.
Indirect Labor
Labor costs associated with support work that cannot be directly linked to the production of goods or services, such as maintenance and supervision.
- Recognize how direct and indirect costs are recorded and allocated in job-order costing.
Verified Answer
JO
Jamie OpheliaJun 23, 2024
Final Answer :
A
Explanation :
Indirect labor cost is recorded as a debit to Manufacturing Overhead because it is a part of the overhead costs that cannot be directly traced to a specific job. These costs are then allocated to jobs based on a predetermined overhead rate.
Learning Objectives
- Recognize how direct and indirect costs are recorded and allocated in job-order costing.
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