 the warehouse. It's going to be in overhead and that overhead then of course is going to be a cost that will be included in overhead. Then we're going to take that overhead and we will assign it to the work and process. How will we do that? That's going to be one of the things that we'll have to figure out because we cannot just take this overhead and assign it to work and process. We can journalize it in there and put it into that account but we need to know which job it goes to and that's going to be one of our problems. One of the things that we'll have to figure out from this step here to assigning the overhead to a job. We're going to have to figure out which job gets how much overhead because some of the guitars are custom guitars. Some of them are more specialized than others. It would be similar if we had like a construction company. Some of them are larger companies. Some of them are smaller projects and larger projects. We need to know how much of the supervisor salary or how much of the small materials we use, how much of the truck and gas possibly would go into each individual job when they're not all the same in size and we don't have any way to assign them particularly to each job. That's going to be one of our problems that we'll talk through as we work through the job cost system. The labor, same thing, we're going to take the labor and we're going to assign it to the work and process and that's going to be direct labor. So anytime we have someone working on a particular guitar, it's pretty easy for us to see which job, which guitar that person is working on and therefore be able to assign their cost directly to work and process and back it up by job cost sheets. However, we may have some people working in the warehouse that we cannot assign to a particular job and those would be things like possibly the supervisor salary, possibly the maintenance in there because we don't know which job it goes to and therefore we're going to say, well, it's still labor. It's going to be labor. We're going to have payroll happening, but some of that labor is going to be directly to the job, direct labor and some of it will be indirect. If we can't assign it directly to the job, then we're going to include it as well in this overhead. So you can see this overhead is a big bucket of stuff that basically we cannot assign or it would be to not cost effective to assign directly to a particular job and therefore we will use some other format. Once we have these items in work and process, at some point in time, we are going to finish them within the work and process and we can then transfer them to the finished goods. So once we're in finished goods, then the finished goods is going to include all of these items, raw materials, overhead and labor within the job, but we're basically going to have a job that will be completed and that job will be in finished goods. We'll have the concept or the account of finished goods. Note that these two accounts on the general ledger are just going to be one account on the general ledger. We're going to have work and process, but within work and process it's made up of a job cost sheets. So these are like sub ledgers that are backing it up in a similar way as accounts receivable would be one account on the general ledger, but it's supported by a subsidiary ledger breaking that information up by customer. So in this case, all of these accounts remember are going to be broken up or backed up supported by a general ledger account breaking the information out by date, but these are also going to be supported by another account, another ledger, another source document that's going to give us the information in terms of jobs. So the finished goods then is going to be one number. We're going to transfer it from work and process to finished goods, but we will still know which jobs are going to be applied to the finished goods. And those jobs, of course, are made up of materials, overhead and labor. And then once we have the finished goods, we're kind of at the end product now. Now we can sell them. If we're talking about guitars, we can sell them now, right? So now is the final step, which is similar to a merchandising company we sell. And that'll go to cost of goods sold. Now, as we go through this process, it's it's easy for us to forget about just the normal sales journal entry because this whole process leads up, of course, to us selling the inventory. That's the point of the business. But none of this is tracking the sales price. We may use the cost sheets to derive the sales price. But the sales price is not directly related to what we're tracking here. We're tracking the cost. So at the end of the day, the last journal entry is going to be increasing sales credit to sales and debit the accounts receivable or cash. And and none of that that journal entry is not being represented here because we don't know exactly what the sales price is based on this information. What will be here is when we make a sale in a perpetual system, the second half of that journal entry is debit to cost of goods sold the expense related to the sale. That's what's here. And a credit to inventory a reduction of the asset related to the sale. And of course, that cost of goods sold then is going to be comprised of jobs that we're going to be selling, you know, a particular job that we make particular guitars or particular construction jobs, those jobs consisting of materials overhead and labor.