The difference between the overhead cost applied to WIP and actual overhead costs of a period is referred to as either

underapplied or overapplied overhead

contains 3 elements of product cost- DM, DL, and MOH, and summarizes the portions of costs remaining int he ending Work in Process inventory and transferred out to Finished Goods

schedule of cost of goods manufactured

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Cost Accounting Ch 3

Question	Answer
The difference between the overhead cost applied to WIP and actual overhead costs of a period is referred to as either	underapplied or overapplied overhead
A debit balance in manufacturing overhead account occurring when the overhead cost applied to work in process is LESS than the over head cost actually incurred during the period.	underapplied overhead
A credit balance in manufacturing overhead that occurs when the overhead cost applied to work in process is Greater than the overhead cost actually incurred during a period.	Overapplied overhead
A costing system used in situations where many different products, jobs, or services are produced each period	job costing system
A costing method that includes all manufacturing costs-direct materials, direct labor, and both variable and fixed manufacturing over head- in the cost of the product	absorbtion costing
a measure of activity such as direct labor hours or machine hours that is used to assign cost to cost objects	allocation base
a rate used to charge manufacturing overhead cost to jobs that is established in advance for each period	predetermined overhead rate
the process of assigning overhead costs to specific jobs using the following formula	overhead application
A costing system in which overhead costs are applied to a job by multiplying a predetermined rate by the actual amount of the allocation base	Normal costing
a form that records the direct materials, direct labor, and manufacturing overhead cost changed to a job	Job cost sheet
includes any materials that go into the final product	raw materials
consists of units of production that are only partially complete and will require further work before they are ready for sale to customers.	work in process
consist of completed units of product that have not been sold to customers	finished good
includes the manufacturing costs associated with the goods that were finished during the period.	costs of goods manufactured
manufacturing overhead account operates as a ?	clearing account
selling and administrative costs are treated as period expenses and are charged directly to the?	income statement
contains 3 elements of product cost- DM, DL, and MOH, and summarizes the portions of costs remaining int he ending Work in Process inventory and transferred out to Finished Goods	schedule of cost of goods manufactured
contains 3 elements of product cost-DM, DL, and MOH, and summarizes the portions of costs remaining in ending Finished Goods inventory and transferred out to Cost of Goods Sold.	schedule of cost of goods sold
1. it can be closed to cost of goods sold 2. it can be closed proportionally to WIP, FG, and COGS	ways to dispose of overhead

Created by: user-2052336

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