Lakhasly

Job order costing _ cost flows Begin by recording the costs of material , labor , and manufacturing overhead.A debit balance is called under applied overhead and a credit balance is called overapplied overhead .Any discrepancy between overhead costs incurred and overhead costs applied shows up as a balance in the Manufacturing Overhead control account at the end of the period .Indirect material or indirect labor costs (and actual overhead costs) are debited to the manufacturing overhead control account.

Job order costing _ cost flows
Begin by recording the costs of material , labor , and manufacturing overhead.
Direct material and direct labor costs are debited to the Work in Process account .
Indirect material or indirect labor costs (and actual overhead costs) are debited to the manufacturing overhead control account.

Manufacturing overhead is applied to Work in Process using the predetermined rate.
The offsetting credit entry is to the Manufacturing Overhead control account .
Cost of finished units is credited to Work in Process (using predetermined rate) and debited to the Finished Goods inventory account .

When units are sold , their costs are credited to Finished Goods and debited to Cost of Good Sold .
Any discrepancy between overhead costs incurred and overhead costs applied shows up as a balance in the Manufacturing Overhead control account at the end of the period .
A debit balance is called under applied overhead and a credit balance is called overapplied overhead .