ACCA MA · Chapter 5 · Question 9 of 10
Which accounting entry records indirect production wages in an integrated cost accounting system?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Debit Production overhead control account; Credit Wages control account
Explanation
The wages control account is credited as wages are analysed out. Direct wages are debited to work in progress, while indirect production wages are debited to the production overhead control account and later absorbed into production.
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