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

Asked by maham237 @ in Business viewed by 406 People

In a job-order costing system, indirect labor cost is usually recorded as a debit to:
a. Cost of Goods Sold.
b. Manufacturing Overhead Control.
c. Finished Goods.
d. Work in Process.

Answered by maham237 @


Answer:

b. Manufacturing Overhead Control.

Explanation:

As we know that, indirect labor cost is a manufacturing overhead which deals with all types of indirect cost like - indirect material, indirect labor, Factory machinery depreciation, rent, and salaries expense to the manufacturing personnel, etc

These are the costs that are not directly connected to the product's production.

So, in the given case, the indirect labor cost is normally recorded to the debit side of the manufacturing overhead control account


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