This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: overhead or SUBTRACT the underapplied overhead to convert back to the MO-applied. Example Manufacturing Overhead: Indirect materials xxx Indirect labour xxx Factory depreciation xxx Total Actual MO xxx Add: MO overapplied xx MO applied to WIP xxx Schedule of Cost of Goods Sold The Schedule of COGS is the same as in chapter 2 except that the COGS must reflect the actual COGS. This requires that we add back any underapplied MO or subtract any overapplied MO (the exact opposite to what we did on the COGM schedule). This brings COGS back to the actual amount. Continued on back…………………………………… Example: FG, beginning xxxx Add: COGM xxxx COGAS xxxx Less, FG, ending xxxx COGS before adjustment xxxx Add: Underapplied MO xxx COGS as adjusted xxxx See example of combined Schedule of COGM and COGS in the format suggested above on p 96 Problem: E3-6, P3-27...
View Full Document
- Winter '12
- Line by Line, COGM