Accounting › Section R · Job order and process costing › Topic R.4
Costing a job and fixing misapplied overhead
A finished job cost sheet tells managers what a job really cost and whether its price made sense. At year end, one more step remains: the overhead charged to jobs never quite matches the overhead actually spent, and the difference has to be cleared.
In this topic
- Pulling a job's cost together
- What a job cost sheet shows
- Worked example: Job 302
- Using the job cost
- Underapplied and overapplied overhead
- Worked example: underapplied at year end
- Overapplied overhead
- Worked example: prorating a large balance
- Reading the balance
- Common mistakes to avoid
- Key takeaways
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