Question

Exercise 3-2 Prepare T-Accounts (LO3-2, LO3-4] Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the transections that it recorded during a recent month is shown below. a. $75,100 in raw materials were purchased for cash. b. $71J00 in raw materials were used in production. Of this amount, $66,000 was for direct materlals and the remainder was for indirect materials. c. Total labor wages of $150,600 were incurred and paid. Of this amount, $134,400 was for direct labor and the remainder was for indirect labor d. Additional manufacturing overhead costs of $126,500 were incurred and paid. e. Manufacturing overhead of $126,800 was applied to production using the company's predetermined overhead rate. L 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 overappled overhead for the period was closed to Cost of Goods Sold. Required: 1. Post the above transactions to T-accounts. 2. Determine the adjusted cost of goods sold for the period. 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. Finished Goods Work in Process Beg. Bal Beg Be End. Bal. End. Bal Cost of Goods Bold Manufacturing Overhead Beg. Bal Beg Bal End Bal End. Bal Requred

Answer 1

(1) -- Post the above transactions to T-accounts.

Answer -

Cash
Beg. Bal.	$0	$75100	(a)
		$150600	(c)
		$126500	(d)
	.
End Bal.	352200

.

Raw Materials
Beg. Bal.	$0
(a)	$75100	$71100	(b)
	.
End Bal.		$4000

.

Work in Process
Beg. Bal.	$0
(b)	$66000
(c)	$134400
(e)	$126800	$327200 [$66000+$134400+$126800]	(f)

.

Finished Goods
Beg. Bal.	$0
(f)	$327200	(g)	$327200

.

Manufacturing Overhead
Beg. Bal.	$0	$126800	(e)
(b)	$5100 [$71100 - $66000]	$21000 [$5100+$16200+$126500-$126800]	(h)
(c)	$16200 [$150600 - $134400]
(d)	$126500

.

Cost of Goods Sold
Beg. Bal.	$0	.	.
(g)	$327200
(h)	$21000
End Bal.		$348200

.

(2) -- Determine the adjusted cost of goods sold for the period.

Answer -

	Particulars	Explanation	Amount ($)
I.	All of the completed jobs were shipped to customers	Calculated in Finished Goods Account	327200
II.	Underapplied overhead for the period	Calculated in Manufacturing Overhead Account	21000
Adjusted Cost of Goods Sold for the Period		I + II	348200