Warr22e_IM_TM_Ch19 - Transparency Master 19-1 COST...

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Unformatted text preview: Transparency Master 19-1 COST ACCOUNTING SYSTEMS Focus: Information to manage manufactur- ing operations Information Provided: 1. Product costs to be used for pricing and other management decisions. 2. Inventory and Cost of Goods Sold bal- ances to be reported on financial state- ments. 3. Costs incurred by each manufacturing department or process to be used for cost control. Types of Systems: 1. Job Order 2. Process Cost Transparency Master 19-2 OVERHEAD If actual overhead < overhead applied Overapplied overhead If actual overhead > overhead applied Underapplied overhead What happens to overapplied or underapplied overhead at the end of the accounting period? If Amount Is If Amount Is Immaterial Material Reason Overapplied Recorded as a Recorded as a Too much over head Overhead decrease to decrease to allocated to the Cost of Goods Work in Process, products; excess Sold Finished Goods, is removed and Cost of Goods Sold Underapplied Recorded as an Recorded as an Too little Overhead increase to increase to overhead Cost of Goods Work in Process, allocated to the Sold Finished Goods, products; and Cost of additional is Goods Sold added Transparency Master 19-3 JOURNAL ENTRIES IN A JOB ORDER COST ACCOUNTING SYSTEM Record the following entries for Jen Manufacturing....
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This note was uploaded on 04/20/2010 for the course BUSINESS Accounting taught by Professor Ebiohuche during the Spring '10 term at DeVry Manhattan.

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Warr22e_IM_TM_Ch19 - Transparency Master 19-1 COST...

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