Strat Music Company manufactures violas and uses a joborder

Strat Music Company manufactures violas and uses a job-order costing system. What account should be debited for the labor costs of the workers who carve the wood for the instruments?

Direct Labor

a. Work in Process

b. Manufacturing Overhead

c. Salaries and Wages Receivable

d. Salaries and Wages Expense

Solution

Ans) Option (A) Work in process

Steps in job-order costing process

In a job-order costing system, jobs are accounted for using the job-order cost sheet. The process involves the following steps: