Term
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Definition
| records manufacturing activities using a perpetual inventory system, which continuously updates records for costs of materials, goods in process, and finished goods inventory |
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Term
| general accounting system |
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Definition
| records manufacturing activities using a periodic inventory system |
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Term
| job order cost accounting |
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Definition
| determines the cost of producing each job or job lot |
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Term
| predetermined overhead rate (formula) |
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Definition
| estimated overhead costs / estimated activity base |
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Term
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Definition
| the remaining debit balance in the factory overhead account when less overhead is applied than is actually incurred |
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Term
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Definition
| the remaining credit balance in the factory overhead account when overhead applied in a period exceeds the overhead incurred |
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Term
| journal entry for clearing out the under or over applied overhead |
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Definition
debit: costs of goods sold
credit: factory overhead |
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