Question

Woods Rs. 800 and Wages Rs. 400 had been used in making furniture for use of the office, which account will

be debited?​

Answer 1

IS THIS USEFUL?

IS THIS USEFUL?

IS THIS USEFUL?

IS THIS USEFUL?

Answer 2

Answer:

Material cost = ₹800

Labour cost =₹ 400

Explanation:

While accounting the cost we must understand the cost centre to know the accountability

• The woods which is required for making furniture .It is needed for making furniture so it is material . Then the woods of ₹ 800 is to be recorded as Material cost
• The wages is the payment to be made to the workers to complete the work . Where wages are to be paid to the labour for complete the work . Here ₹ 400 is the wages to be paid for labourer to do furniture . It is directly attributable to the product ,so it is direct labour cost