Question

Martinez Manufacturing incurred $ 4 comma 000 for indirect labor in Department III. The journal entry to record indirect labor​ utilized, but not paid is​ ________. Process costing is used.

Answer 1

Answer:

debit Manufacturing Overhead, $4,000; credit Wages Payable

Explanation:

Remember that indirect labor expenses are added to the Factory Overhead account, therefore Martinez Manufacturing journal entry to record is to debit Manufacturing Overhead $4,000 and then credit Wages Payable since the expenses was not paid.

It is important to note that in any case a manufacturing company is to list the direct labor expense separately from its indirect labor and wages paid to other employees.