Question

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.

1. $75,600 in raw materials were purchased for cash.
2. $72,600 in raw materials were used in production. Of this amount, $66,100 was for direct materials and the remainder was for indirect materials.
3. Total labor wages of $151,700 were incurred and paid. Of this amount, $133,100 was for direct labor and the remainder was for indirect labor.
4. Additional manufacturing overhead costs of $125,200 were incurred and paid.
5. Manufacturing overhead of $126,300 was applied to production using the company’s predetermined overhead rate.
6. All of the jobs in process at the end of the month were completed.
7. All of the completed jobs were shipped to customers.
8. Any underapplied or overapplied 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

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. Manufacturing Overhead Cost of Goods Sold Beg. Bal. Beg. Bal. End. Bal. End. Bal Required 1 Required 2 >

2.

Cost behavior is considered curvilinear whenever a straight line is a reasonable approximation for the relation between cost and activity.T/F?

3. In a contribution format income statement for a merchandising company, the cost of goods sold reports the product costs attached to the merchandise sold during the period.t/f?

4. In a traditional format income statement for a merchandising company, cost of goods sold is a variable cost that is included in the "Variable expenses" portion of the income statement.T/F?

Answer 1

Answer question

Cash					Raw Materials
Beg.bal					Beg.bal
		75,600	a.		a.	75,600
		151,700	c.				72,600	b.
		125,200	d.
end bal		352,500			end bal	3,000
Work in process					finished goods
Beg.bal					Beg.bal
b.	66,100				f.	325,500
c.	133,100						325,500	g.
e.	126,300
		325,500	f.
end bal	0				end bal	0
Manufacturing overhead					cost of goods sold
Beg.bal					beg bal	0
b.	6,500				g.	325,500
c.	18,600				h.	24,000
d.	125,200
		126,300	e
		24,000	h
End bal	0				end bal	349,500
Adjusted cost of goods sold				349,500
3)	FALSE
4)	TRUE
5)	FALSE