journal entries for over/under absorption

On my sim i had a question asking about doing journal entries from the over and under absoption of overheads.

in the cutting dept it was under absorbed by 1380 and in the packing dept it was over absorbed by 465.

The journals they were asking for were

1 WIP cutting dept overhead absorbed Dr/CR
2 WIP packing over head absorbed DR/CR
3 Under/over abs cutting DR/CR
4 under.over abs packing DR/CR
5 O/head control cutting DR/CR
6 o/head control packing DR/CR

Now i put
1 1380 cr
2 465 dr
3 1380 dr
4 465 cr

but i left the last 2 blank.

can someone point me in the right direction as this is bugging me. did i use the right figures or did i miss something.

other than that one bit, the sim was quite good and i will be annoyed if i failed on this one bit alone.



  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034
    journal entries for over/under absorption

    I've attached my answer so it can have a tabular format.

    I understand the debit and credit approach you took, but this sort of question is looking for entries in the 3 accounts.
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  • taskey
    taskey Registered Posts: 1,800
    excellent, thanks Sandy. I now know where i have gone wrong. Oh well, i am hoping that is all i will get asked on as the rest of the paper was smooth.

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