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Former Member
May 12, 2016 at 11:01 PM

Allocating Salary and Rent


Hello All ,

Our process , We manufacture , stock it and sell it

During this process we incur cost like

Rent , Uitlitlies (Electricity bills etc ) for which we will book accouting entry and make the payments

1) Utilities cost will be distributed to the products through allocation and distribution cycle and I belive Rent as well
----> please correct me if my understanding is wrong here

2) Now in the income statement , we will always be showing the actual expenses incurred right like Rent , utilities etc ?
it has nothing to do with the cost that was distributed in the above step right ?

3) Also Do we ever reclass the COGS ?