Cost of control account is credited with

30. The overhead control account records the actual overhead costs incurred and the overhead costs allocated. 31. There are normally three inventory accounts in a manufacturer's general ledger; raw materials, cost of sales and finished goods. 32. When raw materials are purchased the raw materials inventory account is credited. 33. Actual overhead is debited to the overhead control account. 34. The journal entry to record overhead allocated is debit Work in Process and credit Overhead Control 35. The amount of under or over applied overhead must be removed with an adjusting entry at the end of the accounting period. 36. If the amount of over or under applied overhead is material it should be allocated on a pro rata basis to work in process, finished goods and raw materials. 37. Over applied overhead is always material and should be treated accordingly.
38. The accounting method for assigning production costs to mass produced products is process costing 39. Process costing assigns costs to cost pools and allocates the costs to individual units in a two stage process 40. The cost pools used in process costing are typically overhead cost pools. 41. Transferred in costs refer to the costs that flow between departments in mass production facilities
85. When there are differences between estimates and actual amounts, one outcome is under or over applied overhead. 86. Job cost ting provides a cost estimate for individual jobs while process costing provides an average cost estimate for an individual unit of product. 87. Process costing makes assumptions about exactly when and how costs are incurred during the production process. 88. Mismeasurement of inputs into the costing system is likely to be lower in companies that have just commenced operations. 89. Percentage of completion for work in process units is subject to judgement. 90. If the percentage of completion is over estimated in ending work in process this will affect the cost per equivalent unit for this period and next period.