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?

Unapplied overhead will have to be carried to the P&L with a journal entry perhaps as a line item; manufacturing variances in the cost of goods sold