Direct labor and indirect labor are recorded in work in Process Inventory and Factory Overhead. Option A is correct.
Indirect labor are expenses incurred during manufacturing process which are not directly, some logistics cost can be here.
Direct labor are charged directly in production such as cost of resources. They are recorded in the company overall spending called overhead cost.
Therefore, Direct labor and indirect labor are recorded in work in Process Inventory and Factory Overhead. Option A is correct.
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