when direct labor costs are recorded: multiple choice factory wages payable is debited and work in process…

when direct labor costs are recorded: multiple choice factory wages payable is debited and work in process inventory is credited. work in process inventory is debited and factory wages payable is credited. cost of goods manufactured is debited and direct labor is credited. direct labor and indirect labor are debited and factory wages payable is credited. work in process inventory is debited and factory overhead is credited.

when direct labor costs are recorded: multiple choice factory wages payable is debited and work in process inventory is credited. work in process inventory is debited and factory wages payable is credited. cost of goods manufactured is debited and direct labor is credited. direct labor and indirect labor are debited and factory wages payable is credited. work in process inventory is debited and factory overhead is credited.

Answer

Brief Explanations:

Direct labor costs are a part of the cost of producing goods. When recorded, the cost is added to the Work - in - Process Inventory (an asset account that accumulates the costs of unfinished products). The liability for the wages owed to the workers is recorded as Factory Wages Payable. So, Work in Process Inventory is debited and Factory Wages Payable is credited.

Answer:

B. Work in Process Inventory is debited and Factory Wages Payable is credited.