Factory Labor Cost Incurred
For each pay period the liabilities for wages and other payments are journalized and posted to the general ledger.(As in chapter 4 Accrued Payroll is the only liability that will be illustrated here so the entire payroll will be credited to Accrued Payroll)Regardless of the number of liabilities recorded the offsetting debit will be made to Payroll where labor cost is accumulated temporarily until it is distributed to cost accounts usually at month-end