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Hi sir, there’s a question in BPP revision kit that I’ve done it wrong for twice..so sad:(
It’s 6.8( X Co has recorded the following wages costs for direct production workers for November)
I know which part is direct and which part is indirect, however, I’m not sure about the double entry, and I just reversed debit and credit in my answer. Could you please explain why we debit work in progress account and overhead control account and credit wages control account..Thank you so much!!
When the wages are first paid, we credit cash and debit wages control.
The wages that are used in the process are then transferred to work-in-progess by crediting wages control and debited work-in-progress.
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