Over absorbed Factory Overhead treatment

Costing

If it's large in Amount and reason Is Abnormal Then What is the Treatment of Over absorbed Factory Overhead ?

Chandan Subudhi

CA Final

★ 12K+

26-Sep-21 08:42

740

Answers (5)

COGS (-)OVER APPPLIED OH

Jain Lawrence

CA Inter

★ 16K+

26-Sep-21 08:58

Jain Lawrence

COGS (-)OVER APPPLIED OH

Only to COGS ? What about Raw material and WIP ? So for that have to compute Supplementary Rate ?

Thread Starter

Chandan Subudhi

CA Final

★ 12K+

26-Sep-21 09:01

Cost flow

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Jain Lawrence

CA Inter

★ 16K+

26-Sep-21 09:08

Is it clear now

Jain Lawrence

CA Inter

★ 16K+

26-Sep-21 09:10

Jain Lawrence

Cost flow

There are 3 alternative treatments of Under/Over absorbed . Kindly refer below attachment

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Thread Starter

Chandan Subudhi

CA Final

★ 12K+

26-Sep-21 09:11