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Cost accounting system
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Please give an example for administrstion overheads relating to production activity
Answers (6)
Sudha Reddy
utilities, office supplies, telephone and electricity
Mam... in 4th video of cost accounting system chapter....... sir has transferred â?¹10,000 of administration overheads relating to production to WIP a/c I can't able to understand that posting.... Administration overheads should be transferred to cost of sales a/c only na.... then why here it is transferred to wip a/c?
Thread Starter
Girinath AMam... in 4th video of cost accounting system chapter....... sir has transferred â?¹10,000 of administration overheads relating to production to WIP a/c I can't able to understand that posting.... Administration overheads should be transferred to cost of sales a/c only na.... then why here it is transferred to wip a/c?
Since the question clearly states 10,000 is for production
Thread Starter
Girinath AMam..... Can administration overhead be added to the cost of the product? and what is the reason?
IF those administrative expenses are purely related to production, they should be added to the product - they will be absorbed based on a reasonable rate
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