Page 128 - F2 - MA Integrated Workbook STUDENT 2018-19
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Chapter 6
Accounting for labour costs
Wages control account
$ $
Bank (1) Production (2)
Production overheads (3)
1 Dr Wages, Cr Bank – Labour costs incurred are paid out of the bank before they
are analysed further in the wages control account.
2 Dr Production/WIP, Cr Wages with direct labour costs
3 Dr Overheads, Cr Wages with Indirect labour costs.
Test your understanding 3
During a period $35,750 was incurred for indirect labour.
The correct entries to record this would be:
Debit Credit
A Wages Overheads
B Work in progress Wages
C Overhead Wages
D Wages Work in progress
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