Question
Zoey owns a bakery they use about $500 worth of raw materials per day and 8 hours of direct labor from their 2 employees and
Zoey owns a bakery they use about $500 worth of raw materials per day and 8 hours of direct labor from their 2 employees and about 4 hours of direct labor for themself. When moving the manufacturing costs into production, what would be the best action for determining the accuracy of the associated journal entries for each individual job?
A) Tracking the job on a material requisition sheet.
B) All manufacturing costs should be placed into WIP inventory until they are complete.
C) Journal all direct materials and wait till completion to make the adjusting journal entries for the direct labor.
D) Record each journal entry every hour with the direct labor hours.
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