ECONOMICS

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COST ACCOUNTING

COST BOOK KEEPING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
In an integrated cost and financial accounting system what would be the entry to record direct labourcosts being charged to production?Debit Credit1.) Financial ledger control-Work-in-progress2.) Production overhead-Wages control 3.) Finished goods-Work-in-progress 4.) Work-in-progress-Wages control
A
1
B
2
C
3
D
4
Explanation: 

Detailed explanation-1: -Explanation: Direct labor costs incurred in production should be recorded as an increase to the inventory account called work-in-process and an increase to the liability account called accounts payable.

Detailed explanation-2: -An integrated accounting system is a type of software that combines major financial accounting functions into one application. Replacing several discrete systems or programs eliminates the need for separate books or records for ordering, costing and other management accounting purposes.

Detailed explanation-3: -Integrated It is a system of accounting under which separate ledgers are maintained for cost and financial accounts by Accountants. This system is also referred to as cost ledger accounting system.

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