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In a typical cost ledger, what is the double entry for indirect labour cost incurred?
A DR Wages control CR Overhead control
B DR Admin overhead control CR Wages control
C DR Overhead control CR Wages control
D DR Wages control CR Admin overhead controlHi, sir. I’m confused between A and C. Could you please kindly explain why indirect labour cost is credited to wages control? Thank you so much!!?
When the wages are paid we debit wages control with the expense.
Because it is indirect labour, we then move it to overheads, so credit wages control and debit overheads.
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