Factory wages are always entered into the manufacturing account. The manufacturing account is a part of the cost accounting system that records all direct costs associated with the production process, including direct materials, direct labor, and manufacturing overhead. Factory wages are a type of direct labor cost that is directly incurred in the production process. Therefore, it is recorded in the manufacturing account along with other direct costs. The manufacturing account is used to calculate the cost of goods produced by a company during a specific period, which is then transferred to the trading account and ultimately to the profit and loss account.