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. $76,100 in raw materials were purchased for cash.
2. $72,600 in raw materials were used in production. Of this amount, $66,400 was for direct materials and the remainder was for indirect materials.
3. Total labor wages of $152,900 were incurred and paid. Of this amount, $134,100 was for direct labor and the remainder was for indirect labor.
4. Additional manufacturing overhead costs of $126,200 were incurred and paid.
5. Manufacturing overhead of $123,200 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.

Answer 1

IL_ANSW To work- 117 Process Finished Goods Ak [323700 / By cost of Gool's soll (Jobs Shipped) 323700 323700 artise of the above_transactions_ I- accounts Jxxvio_Enterprise Cash Ale Ite Balancecd_ 355600By law. Malev 19/ By work-in Plocuri By Magyfacty/02 Overhead By 1994fechy-ing overhead 76100 | 134.00 18800 126200 Cost of Gools sold Ale | 32 3700/By Cost of sales | 28000 + Gols Shipped) To finishel Goods To Maqu faclyul ng everheal Al 351700 35 5200 3552ou 351700 351700 2. 66400 6200 - Adjuter Cost of Goods voll for the period - Adjusted cast of Gools soll is the total costs associated with the polyct. 3500 |_76100 56100 Raw Mater 191 Alc To Cash Ale 76100 By work in Process Těy Many facturing overhead zoo by Balance de Work in Process Ale To Raw Material 166.400 | By finished Gools To Cash Ale 134/00 | proves completed) | To Mgayfyctus/99 Overhel. 123200 323700 323700 323700 - Aljurted cost of Goods sold - Finished Goods t: Under Applied Manufacturing overbeats - Adjusted (st of Gools hold 28000 323700 - 351700 The Adiested Cost of Goods sold for the period is $351700 To Raw Material To Cash Ale To cash Ale Manufacturing over heyl Alc 6200 By Work in Process 18800 By Grt of Gools Sold 126200 o Wonder Applied Overhey) 123200 28000 15,200 IS200