Hydraulic oil used in machinery to be booked under which expense direct or indirect

Plus what ledger shall I create for it.

Replies (3)

Direct expense if machinery is directly in use for manufacturing.

Machine oiling ledger under direct expense.

Indirect expense under Repairs and Maintenance to Machinery because it is recurring and for maintenance of machinery for running and manufacturing. Direct costs are mostly the ingredients to the product but maintence of machinery is ingredient to machinery which is an asset helpful in manufacturing no of products.

Which is correct ?

 

Direct Expenses > Machine Oiling ?

OR

Indirect Expenses > Repairs and Maintainence ?

I am currently putting in the later on Indirect Expenses > Maintainence Head (As it is not a repair) Ours is a new company so Will create Repairs under another head to biforcate.

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