Wages in COGS

[chuston578]

I am a Bookkeeper at a Landscaping Company. We have a CFO that is choosing to code wages of our guys in the field to COGS along with the drug tests of these individuals. I'm not stating this is wrong, but I have never seen wages coded to any part of COGS. Could you tell me if any of you have seen this practice before?

 

[ColinCPA]

Sure you can have wages in COGS. If the wages are associated with cost of labor, it's supposed to go into COGS.

 

[Samir]

Besides the equipment maintenance and supplies, I'm guessing labor would be one of the largest components of the cogs.