Question

Jurvin Enterprises recorded the following transactions for the just completed month. The company had no beginning inventorie a $75,600 in raw materials were purchased for cash. b. $72,900 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 $152,500 were incurred and paid Of this amount, $134,500 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 $127100 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. 9. All of the completed jobs were shipped to customers. n. 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

Solution

Required 1

Cash ($)		Raw Materials
Beg. Bal.		a.	75,600	Beg. Bal.
		c.	152,600	a.	75,600	b.	72,900
		d.	126,400
End. Bal.			$3,54,600	End. Bal.	$2,700
Work in Process ($)	Finished Goods ($)
Beg. Bal.				Beg. Bal.
b.	65,300	f.	3,26,900	f.	326,900	g.	326,900
c.	134,500
e.	127,100
End. Bal.	$0			End. Bal.	$0
Manufacturing Overhead ($)	Cost of Goods Sold ($)
Beg. Bal.				Beg. Bal.
b.	7,600 (729,00-65,300)	e.	127,100	g	326,900
c.	18,100 (152,600-134,500)	h.	25,000 (Balancing figure)	h	25,000
d.	126,400
End. Bal.	$0			End. Bal.	$351,900

Actual manufacturing overhead= $7,600+18,100+126,400= $152,100

Underapplied or overapplied overhead= Actual manufacturing overhead-Applied

= $152,100-$127,100 = $25,000

Required 2

Adjusted cost of goods sold= $326,900+$25000= $351,900

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