Job Order Costing - Cost Flows

The video tutorial explains the process of job order costing, starting with recording costs for materials, labor, and manufacturing overhead. Direct costs are debited to the work in progress account, while indirect costs are debited to the manufacturing overhead control account. Overhead is applied using a predetermined rate. Finished units' costs are transferred to the finished goods inventory. Discrepancies between incurred and applied overhead are adjusted at the end of production. The tutorial concludes with a summary of cost flows in job order costing.

What is done with any discrepancies between incurred overhead and applied overhead?

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Summarize the cost flow in job order costing.

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