djjeremiahj
Aug 18, 2014, 01:22 PM
Setting up an accounting system for a retail & manufacturing entity... (in Quickbooks enterprise).
1 "stand alone" manufacturing site (100% production)
3 retail entities
The company produces tiles (bathroom, flooring, etc) and wants to calculate costs and overhead. This is a private entitry, and there will be no WIP except for at the end of year closing.
I want to absorb all costs related to the manufacturing entity into an Overhead Control account on the Balance sheet (as asset), and then allocate as a pre-determined, per item overhead rate (assembly "input" cost) when items sell as cost of goods.
What do you do with excess (unapplied) overhead at the end of the period?
- expense on income statement, or g/l entry against cost of goods?
1 "stand alone" manufacturing site (100% production)
3 retail entities
The company produces tiles (bathroom, flooring, etc) and wants to calculate costs and overhead. This is a private entitry, and there will be no WIP except for at the end of year closing.
I want to absorb all costs related to the manufacturing entity into an Overhead Control account on the Balance sheet (as asset), and then allocate as a pre-determined, per item overhead rate (assembly "input" cost) when items sell as cost of goods.
What do you do with excess (unapplied) overhead at the end of the period?
- expense on income statement, or g/l entry against cost of goods?