# Additional Entries in Cost Books
These cover special situations such as direct issue of RM, returns, normal vs abnormal losses, and inter-job transfers.
| # | Transaction | Integrated System | Non-Integrated System |
|---|---|---|---|
| i | RM directly issued to production (not via stores) | WIP Control Dr — To Cash/Bank | WIP Control Dr — To Gen Ledg Adj |
| ii | RM returned to supplier | Cash/Bank Dr — To RM Control | Gen Ledg Adj Dr — To RM Control |
| iii | Excess RM returned by production dept | RM Control Dr — To WIP Control | Same |
| iv | Normal loss of RM | FOH Control Dr — To RM Control | Same |
| v | Normal loss of wages | FOH Control Dr — To Wages Control | Same |
| vi | Abnormal loss of RM | Costing P/L Dr + Bank Dr — To RM Control | Costing P/L Dr — To RM Control |
| vi | Abnormal loss of wages | Costing P/L Dr + Bank Dr — To Wages Control | Costing P/L Dr — To Wages Control |
| vii | Transfer of material/labour from one job to another | NO ENTRY | NO ENTRY |
## Key Principles
1. Normal losses → absorbed by production → debit FOH Control (becomes part of overhead).
2. Abnormal losses → not part of cost → debit Costing P/L (charged to profit).
3. Under the integrated system, any insurance recovery on abnormal loss is debited to Bank; in the non-integrated system this recovery sits in the financial books, so only the net loss hits Costing P/L.
4. Inter-job transfer is just a re-classification within WIP – no accounting entry is required.