New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Managerial Accounting

by: Kristoffer Hyatt

Managerial Accounting ACCT 2020

Kristoffer Hyatt

GPA 3.67


Almost Ready


These notes were just uploaded, and will be ready to view shortly.

Purchase these notes here, or revisit this page.

Either way, we'll remind you when they're ready :)

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

Class Notes
25 ?




Popular in Course

Popular in Accounting

This 5 page Class Notes was uploaded by Kristoffer Hyatt on Monday October 5, 2015. The Class Notes belongs to ACCT 2020 at College of Eastern Utah taught by Staff in Fall. Since its upload, it has received 44 views. For similar materials see /class/219604/acct-2020-college-of-eastern-utah in Accounting at College of Eastern Utah.


Reviews for Managerial Accounting


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 10/05/15
UNDER AND OVERAPPLIED OVERHEAD Since predetermined overhead rates are based on estimated data at the end of an accounting period overhead costs are usually either underapplied or overapplied In the example overhead is underapplied by 10000 which can be determined by examining the balance in the Manufacturing Overhead account Manufacturing Overhead b 24000 300000 h Actual c 85000 Applied Overhead d 40000 Overhead Costs e 16000 Costs g 145000 310000 300000 Bal 10000 Under applied The difference of 10000 between the actual overhead costs and the applied overhead costs in this case is called underapplied overhead because actual overhead costs exceeded the overhead costs that were applied to inventory Alternatively the amount of the under or overapplied overhead can be determined as follows Actual overhead costs incurred 310000 Applied overhead costs 150 x 200000 300000 Underapplied overhead g 10000 3 JOBORDER COSTING EXAMPLE cont39d Disposition of under or overapplied overhead a Close the balance in Manufacturing Overhead to Cost of Goods Sold Cost of Goods Gold Manufacturing Overhead or b Allocate the balance in Manufacturing Overhead among Work in Process Finished Goods and Cost of Goods Sold in proportion to the amount of overhead applied during the period in each account at the end of the period The figures below are given 10000 10000 Overhead applied during the current period in the ending balance of Work in Process 24000 8 Finished Goods 36000 12 Cost of Goods Sold 240000 Total 300000 100 The journal entry to record the allocation of the underapplied overhead of 10000 would be Work in Process 8 of 10000 800 Finished Goods 12 of 10000 1200 Cost of Goods Sold 80 of 10000 8000 Manufacturing Overhead 10000 JOBORDER COSTING EXAMPLE cont39d Reeder Company Schedule of C osf of Goods Manufactured Direct materials Beginning raw materials inventory 20000 Add Purchases of raw materials 150000 Total raw materials available 170000 Deduct Ending raw materials inventory 10000 Raw materials used in production 160000 Less Indirect materials 24000 136000 Direct labor 200000 Manufacturing overhead applied 300000 Total manufacturing costs 636000 Add Beginning work in process inventory 74000 710000 Deduct Ending work in process inventory 60000 Cost of goods manufactured 650000 Note that manufacturing overhead applied during the period is used to compute the total manufacturing costs on the schedule of cost of goods manufactured not the actual manufacturing costs JOBORDER COSTING EXAMPLE cont39d 4 Reeder Company s income statement for the year assuming that the underapplied overhead is closed directly to Cost of Goods Sold would be Reeder Company Income Statement Sales 900000 Cost of goods sold 600000 10000 610000 Gross margin 290000 Less selling and administrative expenses Wage and salary expense 90000 Insurance expense 4000 Advertising expense 100000 Depreciation expense 15000 209000 Net operating income g 81000 Reeder Company Schedule of Cost of Goods Sold Beginning finished goods inventory 40000 Add Cost of goods manufactured 650000 Goods available for sale 690000 Ending finished goods inventory 90000 Unadjusted cost of goods sold 600000 Add Underapplied overhead 10000 Adjusted cost of goods sold 610000 COST FLOWS IN A JOBORDER COSTING SYSTEM Exhibit 3 14 Debhed for cost of mat39eri purchased labor a manu Underappliad overhead cost


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Jennifer McGill UCSF Med School

"Selling my MCAT study guides and notes has been a great source of side revenue while I'm in school. Some months I'm making over $500! Plus, it makes me happy knowing that I'm helping future med students with their MCAT."

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.