Labor transactions, Cost Accounting

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Labor Transactions

(i) Wages Paid in cash

(ii) Wages incurred like

a) Direct labor or else

b) Indirect labor

 In the Financial Books

 In the Costing Books

  i. Wages Paid in Cash

 

                               Dr Wages a/c

 Dr Wages Control a/c

                              Cr Cash a/c

 Cr General Ledger Adjustment a/c

 ii. Wages Incurred as direct labour

 

     Not recorded in Financial Books

 Dr. W.I.P a/c

 

 Cr. Wages Control

 

 Dr. Production Overheads Control a/c

 


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