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. 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. Required: 1. Post the above transactions to T-accounts. 2. Determine the adjusted cost of goods sold for the period.

Answer 1

Cash (f) Finished Goods 342,000 342,000 (8) 94,000 (a) 132,000 (c) 143,000 (d) (b) Manufacturing Overhead 11,000 20,000 152,000 (e) 143,000 22,000 (1) (c) (d) Raw Materials 94,000 (a) Bal. 89,000 (b) Bal. 5,000 Ilg) Cost of goods sold 342,000 22,000 364,000 (h) (b) Bal. Work in process 78,000 112,000 152,000 (c) (e) Bal 342,000 (f)

Determine the Adjusted Cost of goods sold Direct materials Direct labor Manufacturing overhead applied Cost of completed goods Add: Underapplied Overhead Adjusted Cost of goods sold 78,000 112,000 152,000 342,000 22,000 364,000 Working Notes Calculation of Under/Over) applied ovehead Indirect materials (89,000 - 78,000) Indirect labor (132,000 - 112,000) Other Manufacturing Overhead Cost of completed goods Less: Underapplied Overhead Under applied Overhead 11,000 20,000 143,000 174,000 (152,000) 22,000