LO 3-1

Compute a predetermined overhead rate.

LO 3-2

Apply overhead cost to jobs using a predetermined overhead rate.

LO 3-3

Compute the total cost and average cost per unit of a job.

LO 3-4

Understand the flow of costs in a joborder costing system and prepare appropriate journal entries to record costs.

LO 3-5

Use T-accounts to show the flow of costs in a job-order costing system.

LO 3-6

Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement.

LO 3-7

Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts.

LO 3-8

(Appendix 3A) Use activity-based absorption costing to compute unit product costs.

LO 3-9

(Appendix 3B) Understand the implications of basing the predetermined overhead rate on activity at capacity rather than on estimated activity for the period.