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 transactions that it recorded during a recent month is shown below. a. $77,000 in raw materials were purchased for cash. b. $71.400 in raw materials were used in production of this amount. $66,200 was for direct materials and the remainder was for indirect materials c. Total labor wages of $151,100 were incurred and paid of this amount. $133,500 was for direct labor and the remainder was for indirect labor. d. Additional manufacturing overhead costs of $126,900 were incurred and paid. e Manufacturing overhead of $124,700 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. Required: 1. Post the above transactions to T-accounts 2. Determine the adjusted cost of goods sold for the period,

Answer 1

Cash					Raw Materials
Beg. Bal.		$     77,000	a.		Beg. Bal.
		$ 1,51,100	c.		a.	$     77,000	$     71,400	b.
		$ 1,26,900	d.
End. Bal.	$ 3,55,000				End. Bal.	$       5,600
Work in Process					Finished Goods
Beg. Bal.					Beg. Bal.
b.	$     66,200				f.	$ 3,24,400	$ 3,24,400	f.
c.	$ 1,33,500
e.	$ 1,24,700	$ 3,24,400	f.
End. Bal.					End. Bal.
Manufacturing Overheads					Cost of Goods Sold
Beg. Bal.					Beg. Bal.
b.	$       5,200	$ 1,24,700	e.		f.	$ 3,24,400
c.	$     17,600	$     25,000	g.		g.	$     25,000
d.	$ 1,26,900
End. Bal.					End. Bal.		$ 3,49,400
Adjusted Cost of Goods sold = $349,400