When is the POHR determined?
Before the period begins
POHR formula
#NAME?
the allocation base should be a _______ ________.
cost driver
Formula for overhead applied
#NAME?
actual overhead is determined...
at the end of the period.
_______ WIP when direct materials are used in production.
debit
_____________ raw materials when they are requisitioned for a job.
credit
___________ MOH when indirect materials are used for production.
debit
_________ WIP to apply overhead
debit
What is costs of goods manufactured?
The cost of DM, DL and MOH applied to a job once the job is completed and moved into finished goods.
To adjust for over applied overhead, _______ COGS and _________ __________.
credit; debit MOH
To fix under or over applied overhead you can...
(2 alternatives)
1) Close to COGS
2) Increase or decrease COGS, WIP and Finished Goods
Total manufacturing cost
DL, DM & applied MOH added to WIP during the year
Cost of goods manufactured
cost of the goods transferred from WIP to Finished Goods