If the end of the fiscal year is not a payroll date, the Direct Labor account normally has: Select one: a. A zero balance, because the Direct Labor account is closed along with the other expense accounts. b. Either a debit or a credit balance, depending upon whether the end of the fiscal year falls before or after the end of the pay period. c. A debit balance, representing prepaid labor costs. d. A credit balance, representing accrued wages payable.

The correct answer is "d. A credit balance, representing accrued wages payable.".

Explanation: If the end of the fiscal year is not a payrroll date, the Direct Labor account normally has a credit balance, representing accrued wages payable.

In this case, on the closing date of the fiscal year (prior to the payroll date), direct workers will have contributed their labor for a period in which their wages have not yet been paid, therefore they would be indebted to them. for the amount that will be represented by the "direct labor" account with a credit balance.

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