Answered

IDNLearn.com makes it easy to get reliable answers from knowledgeable individuals. Discover in-depth answers to your questions from our community of experienced professionals.

The journal entry to record direct labor used in process costing is a(n):___________
a. decrease in assets and a decrease in liabilities.
b. increase in assets and an increase in liabilities.
c. decrease in assets and a decrease in equity.
d. increase in assets and an increase in equity.

Sagot :

Answer:

b. increase in assets and an increase in liabilities.

Explanation:

The journal entry to record the direct labor cost used is shown below:

Work in process Dr

   To wages payable

(Being the direct labor cost used is recorded)

Here the work in process is debited as it increased the assets and credited the wages payable as it also increased the liabilities

Your engagement is important to us. Keep sharing your knowledge and experiences. Let's create a learning environment that is both enjoyable and beneficial. Thank you for choosing IDNLearn.com. We’re here to provide reliable answers, so please visit us again for more solutions.