Only actual overhead costs incurred may be charged to the general ledger Work - in Process account. The balances of departmental manufacturing overhead accounts are closed out at the end of each month to the Cost of Goods Sold account in the general ledger. Underapplied overhead occurs when the estimated overhead applied to jobs is creater than the actual overhead costs sustained. I cost accounting system furnishes the total actual overhead costs immediately upon completion of each job. The predetermined overhead rate may be based on estimated overhead costs and estimated production volume for the coming year.. Overhead application rates are used to assign manufacturing overhead costs to specific jobs.f- The department overhead analysis sheets are subsidiary records controlled by the general ledger Manufacturing Overhead Control account. tCil'A voucher prepared for payment of factory utilities should be posted to the respective departmental overhead analysis sheets. "The finished goods ledger is subsidiary to the general ledger Cost of GoO&S Man-H ufactured account. The costs of completed jobs must follow the goods and are transferred from the Work in Process account to the Finished Goods account in the general ledger.T he sale of goods that have been manufactured for stock is recorded in the com-- pleted jobs, journal.A schedule of work in process lists all jobs that have been worked on during the accounting period.Li)A summary posting from the sales journal to the Cost of Goods Sold account is recorded as a debit.Production residues from manufacturing processes are called scrap-. The costs of reprocessing defective goods are known as rework costs. ' When scrap is identified with a specific job, the proceeds of its sale should be fit) II