HELP PLEASE == I THINK the correct answer is 4 – but honestly am quite confused Help with correct answer and “reasoning” why same is correct. Thank you~ Michelle
QUESTION : When factory payroll costs are assigned to products in a job cost accounting system :
1. Factory Labor is debited and work in process is credited.
2. Work in process inventory and Factory Overhead are debited and Factory Labor is credited. 3
3. Cost of Goods Manufactured is debited and Direct Labor is credited.
4. Direct Labor and Indirect Labor are debited and Factory Labor is credited.
5. Work in Process is debited and Factory Labor is credited.