Which of the following controls could best prevent direct labor from being charged to manufacturing overhead?
A.Reconciliation of work-in-process inventory with cost records.
B.Comparison of daily journal entries with factory labor summary.
C.Reconciliation of unfinished job summary and production cost records.
D.Comparison of periodic cost budgets and time cards.
B. Comparison of daily journal entries with factory labor summary.
Daily journal entries are made to record labor, materials, and overhead. Direct labor is posted from the daily factory labor summary. If the latter has been properly recorded, tracing the amounts to the journal entries will determine whether manufacturing overhead was incorrectly charged with direct rather than indirect labor.