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 $76,900 in raw materials were purchased for cash b. 571100 in raw materials were used in production of this amount. $65,300 was for direct materials and the remainder was for indirect materials c. Total labor wages of $152.200 were incurred and paid of this amount, $133.200 was for direct labor and the remainder was for indirect labor d. Additional manufacturing overhead costs of $126,100 were incurred and paid e Manufacturing overhead of $126,900 was applied to production using the companys predetermined overhead rate 1. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Post the above transactions to T-accounts Raw Materials Beg Bal 76.900 76 900

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Answer 1

Cash					Raw Materials
Beg. Bal.					Beg. Bal.
		76900	a.		a.	76900	71100	b.
		152200	c.
		126100	d.
End. Bal.		355200			End. Bal.	5800
Work in Process					Finished Goods
Beg. Bal.					Beg. Bal.
b.	65300	325400	f.		f.	325400	325400	g.
c.	133200
e.	126900
End. Bal.	0				End. Bal.	0
Manufacturing overhead					Cost of goods sold
Beg. Bal.					Beg. Bal.
b.	5800	126900	e.		g.	325400
c.	19000	24000	h.		h.	24000
d.	126100
End. Bal.					End. Bal.	349400

Indirect materials= $71100-65300= $5800

Indirect labor= $152200-133200= $19000

Actual manufacturing overhead= $5800+19000+126100= $150900

Overapplied or underapplied overhead= Actual manufacturing overhead-Applied manufacturing overhead

= $150900-126900= $24000 underapplied

2) Adjusted cost of goods sold= Unadjusted cost of goods sold+Underapplied overhead

= $325400+24000= $349400