Question

Exercise 3-2 Prepare T-Accounts [LO3-2, LO3-4) 2.5 points Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the transactions that it recorded during a recent month is shown below. (8 02:01:09 a. $94,000 in raw materials were purchased for cash. b. $89,000 in raw materials were used in production. Of this amount, $78,000 was for direct materials and the remainder was for indirect materials.. c. Total labor wages of $132,000 were incurred and paid. Of this amount, $112,000 was for direct labor and the remainder was for indirect labor. d. Additional manufacturing overhead costs of $143,000 were incurred and paid. e. Manufacturing overhead of $152,000 was applied to production using the company's predetermined overhead rate. f. All of the jobs in process at the end of the month were completed. g. All of the completed jobs were shipped to customers. h. Any underapplied or overapplied overhead for the period was closed to Cost of Goods Sold. eBook Print Required: 1. Post the above transactions to T-accounts. 2. Determine the adjusted cost of goods sold for the period. References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Post the above transactions to T-accounts. Cash Raw Materials Beg. Bal. Beg. Bal. End. Bal. End. Bal Work in Process Finished Goods Beg Bal. Beg Bal. End. Bal. End. Bal Manufacturing Overhead Cost of Goods Sold Beg Bal. Beg. Bal. End. Bal End. Bal. Required 1 Required 2 >

Answer 1

1. Please find attached T-accounts with appropriate explanations. Grey shaded columns are only for understanding purpose and not part of answer:

Cash Raw Materials 94,000 Work in process Manufacturing OH 78,000 Direct Material 11,000 Indirect Material $89000 - $78000 Cash Beg Bal Raw Material purchase Work in process Manufacturing OH Manufacturing OH Bal c/f in balance sheet 369,000 369,000 94,000 112,000 Direct Labor 20,000 Indirect Labor $132000 - $ 112000 143,000 Actual Manufacturing OH Bal c/f in balance sheet 5,000 $94000 - $ 89000 94,000 369,000 94,000 Finished Goods Work in process All jobs in process are considered 78,000 Finished Goods 342,000 as completed 112,000 152,000 Work in process 342,000 Cost of goods sold All jobs completed are considered 342,000 as sold Raw Materials Cash Manufacturing OH 342,000 342,000 342,000 342,000 Cost of goods sold Raw Materials Manufacturing OH 22,000 Manufacturing OH manufacturing OH applied to 11,000 Work in process 152,000 production Over applied Manufacturing OH closed to Cost of goods sold (Balancing figure $ 174000 - 20,000 Cost of goods sold 22,000 $152000) 143,000 Finished Goods 342,000 Cash Cash Transfer to Income statement 364,000 174,000 174,000 364,000 364,000

2. Adjusted cost of goods sold computation:

78,000 112,000 Cost of goods Sold computation Direct Material Direct Labor Manufacturing OH Indirect Material 11,000 Indirect Labor 20,000 Other Manufc OH 143,000 174,000 364,000 Total cost of goods sold Less: Overapplied Manufacturing OH Adjusted Cost of goods sold -22,000 342,000