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. $76,600 in raw materials were purchased for cash. b. $72,100 in raw materials were used in production. Of this amount, $65,800 was for direct materials and the remainder was for indirect materials. c. Total labor wages of $151,700 were incurred and paid. Of this amount, $134,900 was for direct labor and the remainder was for indirect labor. d. Additional manufacturing overhead costs of $126,400 were incurred and paid. e. Manufacturing overhead of $123,500 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					Beg.bal
		76,600	a.		a.	76,600
		151,700	c.				72,100	b.
		126,400	d.
end bal		354,700			end bal	4,500
Work in process					finished goods
Beg.bal					Beg.bal
b.	65,800				f.	324,200
c.	134,900						324,200	g.
e.	123,500
		324,200	f.
end bal	0				end bal	0
Manufacturing overhead					cost of goods sold
Beg.bal					beg bal	0
b.	6,300				g.	324,200
c.	16,800				h.	26,000
d.	126,400
		123,500	e
		26,000	h
End bal	0				end bal	350,200
Adjusted cost of goods sold				350,200