Wize University Managerial Accounting Textbook > Job-Order Costing
Adjusting Manufacturing Overhead with the COGS Method
Popular Courses
COMM 305
Concordia University
Managerial Accounting
University Study Guides
Managerial Accounting
University Study Guides
COMM 112
Queen's University
ACC 406
Toronto Metropolitan University
ACCTG 322
University of Alberta
ACCT 2230
University of Guelph
ADM 2341
University of Ottawa
RSM222H1
University of Toronto
COMMERCE 2AB3
McMaster University
ACTG 2020
York University
COMM 1102
Dalhousie University
ACC 312
The University of Texas at Austin
ACC 242
Arizona State University - Tempe
ACC 202
Michigan State University
ACIS 2116
Virginia Tech
ACG 2071
University of Central Florida
BUS1 21
San José State University
BUS-A 306
Indiana University - Bloomington
ACCT 2102
Temple University
0:00 / 0:00
Adjusting Manufacturing Overhead - COGS Method
What is the COGS Method
- Adjusts over- or under-applied overhead fully with the cost of goods sold
- When overhead is over-applied, the adjustment decreases overhead and cost of goods sold.
- When overhead is under-applied, the adjustment increases overhead and cost of goods sold.
- Used when the imbalance in manufacturing overhead is immaterial to the company.
0:00 / 0:00
Example: Adjusting Manufacturing Overhead with the COGS Method
Using the following information, prepare the journal entry to adjust manufacturing overhead using the COGS method.
Practice: Adjusting Manufacturing Overhead with the COGS Method
Prepare the journal entry to adjust overhead at the end of the year using the COGS method. The company applies overhead to jobs on the basis of direct labor hours. Do not round your work, round your final answer to 2 decimal places.
Transactions:
| Account | Debit | Credit |
|---|---|---|