Closing entries, also called closing journal entries, are entries made at the end of an accounting period to zero out all temporary accounts and transfer their balances to permanent accounts. In other words, the temporary accounts are closed or reset at the end of the year. Closing entries are journal entries used to empty temporary accounts at the end of a reporting period and transfer their balances...
Bookkeeping
For these reasons, most companies use predetermined overhead rates rather than actual overhead rates in their cost accounting systems. A predetermined overhead rate is calculated at the start of the accounting period by dividing the estimated manufacturing overhead by the estimated activity base. The predetermined overhead rate is then applied to production to facilitate determining a standard cost for a...