ACCT 002 Lecture Notes - Lecture 9: Income Statement, Accounts Receivable

• School: College of The Sequoias
• Department: Accounting (ACCT)
• Course: ACCT 002
• Professor: cooper

Document Summary

At the beginning of the year, argus company estimated the following: Overhead rate = 50% of direct labour cost. By the end of the year, actual data are: Argus uses normal costing and applies overhead on the basis of direct labour cost. At the end of the year, cost of goods sold (before adjusting for any overhead variance) is. Required: calculate the overhead variance for the year, dispose of the overhead variance by adjusting cost of goods sold. Plantwide overhead rate : single overhead rate calculated using all estimated overhead for a factory and dividing by estimated activity for entire plant. Departmental overhead rate: estimated overhead for a department divided by estimated activity level for that same department. Unit cost in the job order system : Work in process : total of all job order cost sheets for unfinished jobs. Finished goods : total of all job order cost sheets for finished but unsold jobs.