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Hi all,
I have another question regarding:
-->Applied Material Fixed OH , Applied Material Var. OH
Are these 2 accounts only for --> Products that we "BUY".
How about Product that we " Manufacture"?
Do these 2 accounts also for transactions in Manufacturing process?
Please advise..
Thank you.. Good day
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It depends on the window you are looking at as the accounts are used for both.
Using the Standard Item Material Costs window in manufacturing you can assign Fixed and Variable overhead amounts to purchased items. These costs will generally roll up through either the standard cost calculation to upper level manufactured items and/or be accumulated when these buy items are used in manufacturing to calculate a material fixed/variable overhead amount.
We cover this in detail in our Manufacturing Cost Accounting book. We have 3 other manufacturing books you may also be interested in.
Visit our web site to see more www.AccoladePublications.com
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