Suppl. note re journal entries for overhead

Suppl. note re journal entries for overhead - Journal...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Journal Entries for Manufacturing Overhead in a Standard Cost System Unlike Direct Materials and Direct Labour, the variances for Manufacturing Overhead are not set up in the accounting records each month. They are only set up in the records at the year end. 1. Entries made at the end of each month: At the end of each month, only the actual and applied manufacturing overhead are recorded in the accounting records (although the manufacturing overhead variances will appear on management reports). To record actual overhead for the month: Variable MO- actual xxx Fixed MO – actual xxx Various accounts* xxx *these accounts could include Accounts payable, Accrued payroll, Accumulated amortization, and other accounts To record applied overhead for the month: WIP xxx Variable MO – applied xxx Fixed MO-applied xxx 2. Entries made at the end of the year a) Close out under/overapplied MO and set up mfg. overhead variances At the year-end, the balances in the variable and fixed MO accounts (i.e., the under or
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Suppl. note re journal entries for overhead - Journal...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online