Cost Book keeping
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Hi - Does anyone please know how much detail we need to go into on cost book keeping. It appears to crop up in all the past papers. I am able to do the journal question on Dec 2003, but on June 2004 and Dec 2004 I didn't have a clue as we havn't gone into that much detail in college and I don't really understand it.<BR><BR>Does anyone have an easy way of remembering what is a DR and what a CR, all I really know if the double entry for over/unber absorbtion<BR><BR>Thanks
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Cost Book keeping
No sure how much detail it will go into but this might help:<BR><BR>Actual fixed over heads = debit Production overheads account<BR>(the other side of this entry would normally be a creditors or bank account)<BR><BR>Overhead absorbed = Debit WIP<BR>& credit production fixed overheads account<BR><BR>and if you have an over absorption<BR>Debit production overheads<BR>credit profit and loss<BR><BR>or under absorption<BR><BR>Debit profit and loss<BR>credit production overheads<BR><BR>In WIP you should have the entries such as overheads absorbed, labour, material. Then the WIP would be transferred to finished goods. I would of thought that if this crops up you would be expected to work out the profit figure as well.0 -
Cost Book keeping
June 04<BR>Dr WIP cutting 6600<BR>Dr WIP stitching 5150<BR>Cr Overabsorbed cutting 400<BR>Dr underabsorbed stitching 470<BR>Cr Fixed O/h Control cutting 6600<BR>Cr Fixed o/h control stitching 51500 -
Cost Book keeping
draw your T's WIP is always a debit<BR>in your fixed o/h t you should have actual o/h as a debit , and boar x actual hours as a cr<BR>then put your over or under abosrbed fig in to make it balance, which would then be transferred out to go on the opposite side in the p & l so a debit in o/h control would be a credit on p & l which means its over absorbed and will increase profit...0