Manufacturing
Capitalizing Labor for In-House Machine Build
Recording the cost of factory engineers building a new piece of production equipment for the company's own use.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Construction in Progress (Asset) | Asset (+) | 5,000.00 | - |
| Salaries & Wages (Factory) | Expense (-) | - | 5,000.00 |
💡 Accountant's Note
If your own staff builds a machine, their salary for that time is not a 'period expense.' It is part of the cost of the machine and must be moved to the balance sheet.
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