Direct labor and indirect labor are recorded, respectively, to: Multiple Choice Work in Process Inventory and Factory Overhead. Cost of Goods Sold and Work in Process Inventory. Work in Process Inventory and Finished Goods Inventory. Cost of Goods Sold and Finished Goods Inventory. Finished Goods Inventory and Work in Process Inventory.

Respuesta :

Direct labor and indirect labor are recorded in work in Process Inventory and Factory Overhead. Option A is correct.

What is indirect labor?

Indirect labor are expenses incurred during manufacturing process which are not directly, some logistics cost can be here.

Direct labor are charged directly in production such as cost of resources. They are recorded in the company overall spending called overhead cost.

Therefore, Direct labor and indirect labor are recorded in work in Process Inventory and Factory Overhead. Option A is correct.

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