CIMA BA2 · Chapter 8 · Question 2 of 9
In an integrated accounting system, which entry records DIRECT labour costs charged to production?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Debit Work in progress control account, Credit Wages control account
Explanation
Gross wages are first collected in the wages control account. The direct element is then transferred out (credit wages control) and charged to production (debit work in progress). The indirect element is debited to the production overhead control account.
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