Cost of Goods Sold

kristy80 · #1 Nov 29, 2007, 10:27 AM

We have a cleaning lady that we pay with a check and she has a 1099 on file. For recording her in the general journal, would she be part of cost of goods sold:job related labor cost or would she be a business expense under janitorial?

student 101 · Nov 29, 2007, 11:27 AM

Quote:

Originally Posted by kristy80

We have a cleaning lady that we pay with a check and she has a 1099 on file. For recording her in the general journal, would she be part of cost of goods sold:job related labor cost or would she be a business expense under janitorial?

you are paying the lady she will be under wages or salaries expense

terryg752 · Dec 1, 2007, 03:31 AM

I am not sure but I think it will be like this:

It depends.

Is she working in the factory or plant?

If yes, her salary should go towards Labor or Factory Overhead.

If she works in other offices, then her salary becomes an administrative expense.



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