Wize University Managerial Accounting Textbook > Job-Order Costing
Job-Order Costing Income Statement
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Job-Order Costing Income Statement
Adjusting COGS on the Income Statement
- COGS section of the income statement should show an adjustment for over- or under-applied manufacturing overhead
- The adjustment is shown after on the line following the calculation of cost of goods sold using finished goods inventory
- If overhead was over-applied, COGS is reduced and the income statement should include: Less: Over-applied overhead
- If overhead was under-applied, COGS is increased and the income statement should include: Add: Under-applied overhead
0:00 / 0:00
Example: Job-order Costing Income Statement
Prepare the income statement using the following information, assume any over or under applied overhead is immaterial.
Mark Yourself Question
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Practice: Job-order Costing Income Statement
Prepare the income statement for ABC Inc. for the month ended March 31, 2022 using the following information, assume any over or under applied overhead is material.
