Question

Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the transactions that it recorded during recent month is shown below. a. $76,800 in raw materials were purchased for cash. b. $72,000 in raw materials were used in production. Of this amount, $66,100 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, $134,000 was for direct labor and the remainder was for indirect labor d. Additional manufacturing overhead costs of $125,500 were incurred and paid. e Manufacturing overhead of $122,900 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 Material 1 Beg.Bal а Beg. Bal 76800 152500 125500 a 76800 b с d 72000 End Bal. 354800 End Bal. 4800 Work in process Finished Goods Beg.Bal b Beg.Bal f 323000 323000 с 66100 134000 122900 e f 323000 End Bal. End Bal. Cost of goods sold Manufacturing Overhead Beg.Bal b 5900 e 122900 с 18500 h 27000 d 125500 End Bal. Beg.Bal 8 h 323000 27000 End Bal. 350000 2 Compute adjusted cost of goods sold as follows: Adjusted cost of goods sold = Applied overheads + Goods shipped to customers Adjusted cost of goods sold = 27000 + 323000 Adjusted cost of goods sold = $350000

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