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. $76,300 in raw materials were purchased for cash. $72,300 in raw materials were used in production. Of this amount, $65,800 was for direct materials and the remainder was for indirect materials. Total labor wages of $152,000 were incurred and paid. Of this amount, $133,000 was for direct labor and the remainder was for indirect labor. Additional manufacturing overhead costs of $125,000 were incurred and paid. Manufacturing overhead of $124,500 was applied to production using the company’s predetermined overhead rate. All of the jobs in process at the end of the month were completed. All of the completed jobs were shipped to customers. 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

1.)	Raw	Materials		Cash
	Debit $	Credit $		Debit $	Credit $
	76,300	72,300			76,300
					152,000
					125,000
	Work in	process Inventory		Manufacturing	Overhead
	Debit $	Credit $		Debit $	Credit $
	65,800	324,200		6,500	125,400
	133,000			19,000	25,100
	125,400			125,000
	Labor			Finished Goods	Inventory
	Debit $	Credit $		Debit $	Credit $
	152,000	152,000		324,200	324,200
	Cost of	Goods Sold
	Debit $	Credit $
	324,200
	25,100

2.)

Adjusted Cost of goods sold

$ 349,300

=324200+25100