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Evo-ERP and DBA Classic >> Manufacturing >> Labor and OH
http://www.istechforum.com/YaBB.pl?num=1244654083

Message started by Dawn on 06/10/09 at 10:14:43

Title: Labor and OH
Post by Dawn on 06/10/09 at 10:14:43

On the income statement the Labor and OH from the Work Orders, is that from work performed during the month or for what shipped during the month. I did a monthly comparison and I had a large number of sales one month and next to nothing the next month but my Labor and OH from Work Orders is about the same (these apprear negative on the I/S). The only thing I can figure is that we ran a steedy production over two months to build up inventory. So the only conclusion I come to is that the Work Order Labor & OH that apprears on the income statement is for what is running in production not what has shipped. Which in turns should be the offset to Direct Payroll Expense and the overall OH.

Am I right or confused? :-/

Title: Re: Labor and OH
Post by cathyh on 06/10/09 at 10:58:37

You are right, the absorbed labor accounts (credit to expense) come from labor entered against a work order and have nothing to do with sales of items that you have built. The COGS, on the other hand, is totally related to what you have sold.

Title: Re: Labor and OH
Post by Dawn on 06/10/09 at 11:26:30

Thank you. :D