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.

1. $75,100 in raw materials were purchased for cash.
2. $72,400 in raw materials were used in production. Of this amount, $65,300 was for direct materials and the remainder was for indirect materials.
3. Total labor wages of $152,300 were incurred and paid. Of this amount, $134,200 was for direct labor and the remainder was for indirect labor.
4. Additional manufacturing overhead costs of $125,300 were incurred and paid.
5. Manufacturing overhead of $122,500 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.

9. Required:

   1. Post the above transactions to T-accounts.

   2. Determine the adjusted cost of goods sold for the period.

Answer 1

1.

Raw material
Cash	$75100	Work in Progress	$65300
		Manufacturing Overhead	$7100
		End. Bal.	$2700

Work in Progress
Raw Materials	$65300	Finished Goods	$322000
Cash	$134200
Manufacturing Overhead	$122500
		End. Bal.	0

Finished Goods
Work in Progress	$322000
		Cost of Goods Sold	$322000

Manufacturing Overhead
Raw Materials	$7100	Work in Progress	$122500
Cash	$18100	Cost of Goods Sold	28000
Cash	$125300

Cost of Goods Sold
Finished Goods	$322000
Manufacturing Overhead (underapplied)	$28000
End. Bal	$350000

Cash
		Raw Materials	$75100
		Work in Progress	$134200
		Manufacturing Overhead	$18100
		Manufacturing Overhead	$125300
		End Bal	$352700

2). Adjusted cost of goods sold

Particular	amount ($)
Cost of goods sold	322000
Add: Underapplied Manufacturing Overheads	28000
Adjusted cost of goods sold	$350000

Since the Format is not given, Answer is prepared in general format.

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