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Capacity Cost and Salary Wages

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Hello,

In a manufacturing implementation, we setup the cost of labor (working on a machine to produce items) as a work center or machine center by applying Direct unit cost; this cost will be added to Finished item cost, in addition to components consumed to produce the Finished Item.

The question is: What is the relation with Salary / Wage for this labor? are we making double entries when setup cost for labor and then accounting department post salary wage journal voucher?

kindly advice.

Regards,

David


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