[15fortune]

Hi

I am stuck on an assignment question in management accounting where I must record information into ledger accounts including the accounts - Material control; Factory labour accrued; Factory overhead control; Work in process; and the Finished goods account.

I am not sure how to record 'other selling and admin costs'. I am thinking the credit side may be to the finished goods account but I am not sure. I am also not sure what the debit side would be- would be Cost of Goods sold?

Thanks!:confused:

[Criado]

The debit side of this account is the title 'other selling and admin costs' itself. The credit side varies; basically, it is, but not limited to, cash or accounts payable .

[morgaine300]

Keep in mind that costs of goods sold is the accumulation of product costs that went into the product you sold. Selling & admin aren't product costs -- they aren't part of the manufacturing process, so it can't go into any of your new manufacturing accounts. Product costs are only direct materials, direct labor and overhead. Selling & admin are period costs.