Question

urvin 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. $94,000 in raw materials were purchased for cash.
2. $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..
3. 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.
4. Additional manufacturing overhead costs of $143,000 were incurred and paid.
5. Manufacturing overhead of $152,000 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

Answer 94000 Il Pashog of the above transacheos in the I-accouglass _ _ Unvío Enterprises Wit Goh Account II To Balance bodo moro By Raw mq bevigls | By Work-in-process Alc To Balance of 369000 By many facturing Overhead | By. Many factw lag Ovesher) L as inversion 369000 دو مدال 20000 143000 369000 || To Gosh Alcatti 78000 Raw materials Account | 94000 By Work in proceso Alca By M494facturing Overhead 1 By Balance of 1000 5000 94000 P9 400 342000 Work-in Process Account To Raw Malevighs 78000 | By Flojshed Goodo Ale To Gsh Ak 11/2000 C Process'completed) To Manufacturing Overhead Ace 152000 342000 1 342000 152000 || To Row Materials. Alc. Il To Cash Al 1 To Cash Ale h a manufacty v199 Overheal Account Ivoo B4 Work-in-Piceris | 20000 [By Cost of Goods soll 143000 (under Applied overhea)) 22000 174000 174000 I

To Work in Process Finished Goods Account | 342000 By cost of Goods sold (Jobs shipped) 342000 _342000 342000 Cost of 342000 Goods Sol Account By cost of sales 184199cing figure) To finished Goods Ale To Many facrywing Overhead Ale _364000 22000 344000 367406d - Adjusted Cost of Gools for the perior. Aljyiled cast of Gools is the total costs -Adjusted cost of Goods Sold quociated with the product ل عطكلفع کلمه _ t! Vader Applied Manyaclyviny Ovesheqd Adjyshed cost of Goods soll 362000 22000 364000 The adjusted cost of Goods sold for the period is $364000,