Taylor Company uses normal job costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2017: Budgeted manufacturing overhead costs $3,800,000 Budgeted machine-hours 200,000 Actual manufacturing overhead costs $3,660,000 Actual machine-hours 196,000 1. Show two T-accounts, MOHA and MOHC. In the MOHA T-account, show the calculation of allocated OH. 2. Write a journal entry to record the allocation of OH to a job. 3. Show the journal entry to close MOHA, MOHC, and adjust COGS, 4. Is the allocated OH over- or under-applied?
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.
Taylor Company uses normal
Budgeted manufacturing overhead costs $3,800,000
Budgeted machine-hours 200,000
Actual manufacturing overhead costs $3,660,000
Actual machine-hours 196,000
1. Show two T-accounts, MOHA and MOHC. In the MOHA T-account, show the calculation of allocated OH.
2. Write a
3. Show the journal entry to close MOHA, MOHC, and adjust COGS,
4. Is the allocated OH over- or under-applied?
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