Job cost in a cost sheet

Tharun (sd) (95 Points)

23 May 2013  

Hi All,

While preparing cost sheet for a product Apart Direct Material & Direct labour we also have Labour charges paid to job orders to third party. I'm adding currently showing this currently under Factory overheads. is it right? or since its involved in the processing of material directly it should sit in the Direct labour?

Thanks for ur help.