A. What is the actual B. What is the allocated C. Is manufacturing overhead underallocated or manufacturing overhead? overallocated? manufacturing overhead? D. Prepare the adjusting entry. Date 56,480✔ Description Dec. 31, 20 Manufacturing Overhead Cost of Goods Sold 2,100 55,980 15,650 32,480 Date 5,750 A. What is the actual manufacturing overhead? X D. Prepare the adjusting entry. 50,880 Description Dec. 31, 20 Manufacturing Overhead Cost of Goods Sold 2. The following information was reported for Gray Enterprises on December 31, 2021. Manufacturing Overhead Debit X Underallocated ✓ 5,600 X X Debit B. What is the allocated C. Is manufacturing overhead manufacturing overhead? underallocated or overallocated? Credit Overallocated X X 5,600 X Credit X
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Manufacturing
| Debit | Credit |
|---|---|
| 3,380 | 50,880 |
| 15,780 | |
| 37,320 | |
| 5,600 |
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