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Unformatted text preview: This account will always clear out to zero and shows both the gross amount of the labour cost charged for both Direct Labour and Indirect Labour (credit side) and the gross labour cost paid (same amount, debit side). It will always clear out to a zero balance when the payroll gets paid. The costs for direct labour will still end up being charged to WIP and the indirect labour will still get charged to MO. 4. We will not longer charge actual manufacturing overhead to the jobs and WIP. This is discussed in a separate note. We will now use a pre-determined overhead rate based on an estimate and calculate mfg. overhead applied (MO-applied)....
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This note was uploaded on 03/03/2012 for the course ACCT 2460 taught by Professor Farrar during the Winter '12 term at Conestoga.
- Winter '12