ACCT 320 Ch 3 SG

raw materials

any materials that go into the final product

work in process

units of production that are partially complete and will require further work until ready to be sold to customers

finished goods

completed units of product that have not been sold to customers

schedule of cost of goods manufactured

schedule containing three product costs (direct materials, direct labor, manufacturing overhead) that summarizes the portions of those costs remaining in ending Work in Process and transferred to Finished Goods

schedule of cost of goods sold

schedule containing three product costs (direct materials, direct labor, manufacturing overhead) that summarizes the portions of those costs remaining in ending Finished Goods and transferred out to Cost of Goods Sold

underapplied/ overapplied overhead

overhead cost applied to Work in Process- actual overhead costs

closing factory overhead to COGS

debit Cost of Goods Sold, credit Manufacturing Overhead (underapplied)

debit Manufacturing Overhead, credit Cost of Goods Sold (overapplied)

closing factory overhead proportionally to WIP, Finished Goods, and COGS

debit WIP, Finished Goods, COGS and credit Manufacturing Overhead (underapplied)

debit Manufacturing Overhead and credit WIP, Finished Goods, COGS (overapplied)