Labor records by employee (see Exhibit 4-8, Panel B, for G. L. Cook) are used to trace the costs of direct manufacturing labor to individual jobs and to accumulate the costs of indirect manufacturing labor in the Manufacturing Department overhead records (Exhibit 4-8, Panel C). The labor records are based on the labor-time sheet source documents (see Exhibit 4-3, Panel B). The subsidiary ledger for employee labor records (Exhibit 4-8, Panel B) shows the different jobs that G. L. Cook, Employee No. 551-87-3076, worked on and the $720 of wages owed to Cook, for the week ending February 16. The sum of total wages owed to all employees for February 2020 is $54,000. The job-cost record for WPP 298 shows direct manufacturing labor costs of $450 for the time Cook spent on the WPP machine job during that week (Exhibit 4-9, Panel A). Total direct manufacturing labor costs recorded in all job-cost records (the subsidiary ledger for Work-in-Process Control) for February 2020 is $39,000.
G. L. Cook’s employee record shows $54 for maintenance, which is an indirect manufacturing labor cost. The total indirect manufacturing labor costs of $15,000 for February 2020 appear in the Manufacturing Department overhead records in the subsidiary ledger (Exhibit 4-8, Panel C). These costs, by definition, cannot be traced to an individual job. Instead, they are allocated to individual jobs as a part of manufacturing overhead.