For a manufacturing entity using Job Order Costing, all non-direct manufacturing costs are captured in the asset account Factory Overhead (FOH). When a Job is completed, an estimate of the amount of FOH costs that should be applied to the completed job is allocated to the Job's WIP asset account. This step is done for each Job that is completed during the year and still in process at year-end. If the amount of FOH that is allocated during the year is not equal to the actual FOH costs incurred during the year, then at year-end, any balance left-over in the FOH account is "zeroed-out" and expensed. What is the proper journal entry (per GAAP) required to move ("zero-out") any balance in the FOH account at year-end?? (assume there is a $1,000 left-over DEBIT balance in the FOH account prior to this entry)
For a manufacturing entity using
When a Job is completed, an estimate of the amount of FOH costs that should be applied to the completed job is allocated to the Job's WIP asset account. This step is done for each Job that is completed during the year and still in process at year-end.
If the amount of FOH that is allocated during the year is not equal to the actual FOH costs incurred during the year, then at year-end, any balance left-over in the FOH account is "zeroed-out" and expensed.
What is the proper
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