Apportionment to Trading Account

System

I was wondering if there would be a question involving aportionment to the trading account.

For example wages being allocated in the trading account.

If so would that be added to the cost of goods sold
which gives cost of sales.

System

Re:Apportionment to Trading Account

The costs directly associated with the product go in the trading account.

So if a man in a factory makes a football, that mans wages and the materials used in the football go in cost of sales.

If another man sells it onhe has not directly associated with the product and thus it is an expense rather than a cost of sale.

All very tricky and i'm sure there must be companies out there that put certain items in COS and others who wouldn't put them in. It only seems clear cut in manufacturing. At least to me anyway.