ECONOMICS

Detailed explanation-1: -Answer and Explanation: Explanation: When direct labor is incurred the accountant should record a debit to work-in-process inventory and a credit to accrued payroll. Accrued payroll is a liability account that represents the amount of wages still owed to employees.

Detailed explanation-2: -The initial journal entry of an accrued wage is a “debit” to the employee payroll account, with the coinciding adjustment being a “credit” entry to the accrued wages account.

Detailed explanation-3: -Answer and Explanation: To record the incurrence of direct labor costs you need to debit “Work-in-Process” and credit “Wages and Salaries Payable".

Detailed explanation-4: -Definition of Accrued Payroll Accrued payroll includes wages, salaries, commissions, bonuses, and other payroll related expenses that have been earned by a company’s employees, but have not yet been paid or recorded in the company’s general ledger accounts.

Detailed explanation-5: -Payroll journal entries refer to an accounting method of recording the wages or compensation managers pay their team members at a small or mid-sized business. An accountant records these entries into their general ledger for the company and uses payroll journal entries to document payroll expenses.