Question

When factory wages payable costs for labor are allocated in a job cost accounting system:

a. Work in Process Inventory and Factory Overhead are debited and Factory Wages Payable is credited.

b. Cost of Goods Manufactured is debited and Direct Labor is credited.

c. Direct Labor and Indirect Labor are debited and Factory Wages Payable is credited.

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

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