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sir i have a doubt in one of the questions mentioned in the exam kit:
how would the cost be recorded in the cost ledger if the direct labour costs in a manufacturing company are $95000?
correct Ans: Dr. WIP
Cr. wages and salariesmy doubt is sir, why is the answer not
Dr. Wages and salaries
Cr. bankAll wages (whether direct or indirect) will be debited to the wages account. The production wages will then be moved from the wages account to the work-in-progress account where all the production costs will be entered so as to be able to calculate the full production cost of the goods.
Hi Sir,
The answer given is as below. So the answer is correct?
Cr Wages and salaries
Dr WIPIf overtime is on specific request of the customer . Indirect worker basic pay and premium direct cost or indirect cost ??
All the pay to indirect workers is an indirect cost.
Have you watched my free lectures on this? The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
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