Item1 Time Remaining 29 minutes 48 seconds 00:29:48 Item 1 Item 1 Time Remaining 29 minutes 48 seconds 00:29:48 During June, Buttrey Corporation incurred $74,000 of direct labor costs and $14,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a: Multiple Choice debit to Work in Process of $74,000. credit to Work in Process of $88,000. debit to Work in Process of $88,000. credit to Work in Process of $74,000.

Question

Business

Yaretzi

24 August, 06:50

Item1 Time Remaining 29 minutes 48 seconds 00:29:48 Item 1 Item 1 Time Remaining 29 minutes 48 seconds 00:29:48 During June, Buttrey Corporation incurred $74,000 of direct labor costs and $14,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a: Multiple Choice debit to Work in Process of $74,000. credit to Work in Process of $88,000. debit to Work in Process of $88,000. credit to Work in Process of $74,000.

+3

Answers (1)

Know the Answer?

Alyvia Suarez · Answer 1

debit to Work in Process of $74,000.

Explanation:

When we record entry related to work in process, only directly related cost is charged against work in process.

As work in process is an inventory it is part of assets and assets are recorded with a debit balance.

For this, the work in process shall be debited.

In the given instance direct costs are: Direct labor = $74,000

Thus entry for recording work in process will debit work in process inventory with $74,000.