Asked by

Hitesh Rajain
on Nov 19, 2024

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In a job-order costing system, indirect labor cost is usually recorded as a debit to:

A) Manufacturing Overhead.
B) Finished Goods.
C) Work in Process.
D) Cost of Goods Sold.

Job-order Costing System

An accounting system that accumulates costs per individual job or project to calculate profitability and costs.

Indirect Labor Cost

Costs related to employees who assist in the production process but do not actively work on the product, such as maintenance staff and supervisors.

Manufacturing Overhead

All indirect costs associated with the production process, including utilities, depreciation, and supervision expenses, not directly tied to specific product units.

  • Determine and maintain a record of various cost segments (direct, indirect, raw materials, labor) inside a job-order costing model.
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