Many documents are for Recording Actual Manufacturing Overhead as we have seen in industries. But the following documents are said to the original documents for recording Actual Manufacturing Overhead.
Purchase Vouchers: Manufacturing overhead items recorded on purchase vouchers are those charged off in total each period. These transactions are supported by vendors’ invoices which are analyzed and classified in accordance with the chart of accounts. The specific account charged is indicated by an account number.
Materials Requisitions. Materials requisitions contain all charges for indirect materials and supply items drawn from storerooms. Requisitions specify the account, code number, and department to which the costs to be charged . Accounts affected by transactions involving materials requisitions are Indirect Materials, Supplies, Fuel, Lubricants, Shop Supplies, and Sundry Operating Supplies.
Labor Job Time Tickets. Labor job time tickets are used for indirect labor. Foremen, timekeepers, or the workmen themselves enter pertinent data on the time ticket so that proper overhead accounts can be charged. The data to be included are: indirect labor operational code, worker’s name and code number, and department to which indirect labor is to be charged.
General Journal Vouchers. A general journal voucher is used for making entries in the general journal. Journal entries principally used for end-of-month adjustments. Typical Manufacturing overhead items involved in such transactions are depreciation, fire insurance, and property taxes.
Books of Original Entry. The books of original entry used to accumulate Manufacturing overhead costs are: (1) the accounts payable register and /or the cash payments journal, (2) the general journal, and (3) the factory journal. The format for the books of original entry depends on the basic plan for accumulation of actual Manufacturing overhead items in the accounts.
Accounts Payable Register and or Cash Payments Journal. Transactions with outsiders are usually recorded in the accounts payable register and/or cash payments journal. Items are journalized from prepared vouchers based on the original source documents. The entry is usually a debit to Manufacturing Overhead Control. Detailed postings are made to individual expense accounts in the Manufacturing overhead subsidiary ledger.