Manufacturing
Allocating Direct Labor to Production
Moving factory worker wages from the payroll account into Work-in-Process (WIP).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Work-in-Process (WIP) Inventory | Asset (+) | 2,500.00 | - |
| Wages Payable (Factory) | Liability (+) | - | 2,500.00 |
💡 Accountant's Note
In manufacturing, factory labor is 'productized.' The cost is added to the value of the inventory sitting on the assembly line.
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