MGA 202 1st Edition Lecture 6Outline of Last Lecture: Chapter 1I. Job Order Costing II. Sales and Production OrdersIII. Job Cost Sheet IV. Manufacturing Overhead Application ProcessV. End of Period Adjustment: Under or Over applied OverheadOutline of Current Lecture-Chapter 2: Job-Order Costing & Product Costing SystemsA. Job-Order Costing: Cost Flow (T accounts & Journal Entries)- Materials Purchase: Debit-Raw Materials, Credit-Accounts Payable- Material Usage: Debit-WIP &MOH, Credit-Raw Materials- Labor Usage: Debit-WIP & MOH, Credit-S&W Payable - Actual Overhead: Debit-MOH, Credit-Accounts Payable, Taxes, Insurance, & Accumulated Depreciation - Apply Overhead: Debit-WIP, Credit-MOH- Job Completed: Debit-Finished Goods, Credit-WIP- Sales: Debit-Accounts Receivable & Cost of Goods Sold Credit- Sales & Finished Goods- Non-Manufacturing Costs: Debit-Salaries Expense Credit- Salaries Payable Debit-Advertising Expense Credit-Accounts Payable B. End of Period Adjustments for Overhead - Overapplied: Debit-MOH Credit- Cost of Goods Sold - Underapplied: Debit-Cost of Goods Sold Credit-MOHThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.C. Review of Job-Order Costing*A lot of the T-account information is easier explained visually!Next Lecture-2/16(continuation of Chapter 2)- Quick review of Chapter 2- 6 Example Exercises will be gone over in