CAF-5 · Chapter 4 · Question 10 of 10
When an entity operates an integrated accounting system, what is the correct journal entry to allocate direct labour costs to the production process?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Debit: Work in Process Control / Credit: Salaries & Wages Control
Explanation
When transferring direct labour costs to production, the cost is charged to Work in Progress. The journal entry is to Debit the Work in Process Control account and Credit the Salaries & Wages Control account.
More Labour Costing MCQs
- Q2A worker takes 30 minutes to produce one unit of a product. In an 8-hour shift, the worker produces 20 units. What is the worker's labour…
- Q3Which of the following best distinguishes "Labour Productivity" from "Labour Efficiency"?
- Q4Under a "High day-rate system" of wage incentives, how is the employee rewarded?
- Q5A factory standard assumes a worker will produce 20 units per hour. The standard wage rate is Rs. 30 per hour. During an 8-hour shift, a…
- Q6Under Variant 2 of the Guaranteed Minimum Wage plan, an employee receives a basic guaranteed wage for standard output, plus: