CAT / FIA FMA Syllabus C. Cost Accounting Techniques - Labour cost inputs and outputs - Notes ^{12 / 23}

Transactions for the labour account

1. When gross wages are paid to employees, they are accounted for as

   Dr Labour A/c
   Cr Bank A/c

2. When labour is used within a particular production process, the direct labour costs are transferred from the labour account using

   Dr Work in progress A/c
   Cr Labour A/c

3. Indirect labour costs are transferred from the labour account to be grouped with other indirect costs using

   Dr Production overhead A/c
   Cr Labour A/c