How to Record GFM Kitting Labor Costs
Recording labor costs associated with the assembly and organization of Government Furnished Material (GFM) into production kits.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Direct Labor - Contract Production | Debit | 4,200.00 | - |
| Accrued Payroll | Credit | - | 4,200.00 |
💡 Accountant's Note
Labor spent handling, kitting, and preparing GFM for use on a specific contract is considered a direct labor cost and should be charged to the project's work breakdown structure (WBS).
Practitioner & Systems Framework
💻 ERP Architecture
Use a specific WBS element for 'GFM Management' or 'Material Handling' within the project structure.
⚠️ Audit Flags
DCAA floor checks and labor distribution audits to ensure kitting labor is not being double-counted in overhead.
📄 Required Documentation
Timesheets with specific charge codes and material kitting lists signed by the production supervisor.
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Discussion & Community Questions
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