Question

Check my work 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. $76,800 in raw materials were purchased for cash. b. $72,800 in raw materials were used in production. Of this amount, $66,400 was for direct materials and the remainder was for indirect materials. c. Total labor wages of $150,100 were incurred and paid. Of this amount, $134,800 was for direct labor and the remainder was for indirect labor. d. Additional manufacturing overhead costs of $126,300 were incurred and paid. e Manufacturing overhead of $127,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Post the above transactions to T-accounts. < Prev 2 of 4 Next > f

Answer 1

Rawmaterial account

Debit	Credit
Date	Particulars	Amt	Date	Particulars	amt
	To cash	76800		By direct material	66400
				By indirect Material	6400
		76800			72800

Direct labour a/c

Debit	Credit
Date	Particulars	Amt	Date	Particulars	amt
				By cash	134000
	To balance c/d	134000
	Total	134000			134000

Indirect Labour

Debit	Credit
Date	Particulars	Amt	Date	Particulars	amt
				By cash	15300
	To balance c/d	15300
	Total	15300			15300

Manufacturing overhead

Debit	Credit
Date	Particulars	Amt	Date	Particulars	amt
	To cash	126300
				By balance c/d	126300
		126300			126300

Cost of goods sold = Direct material+Direct labour+Manufacturing overhead-Closing stock

As per the information, all the completed jobs are shipped to the customer. So there is no closing stock.

Actual incurred manufacturing over head is lesser than budged manufacturing overhead

Cost of goods sold = 66400+134000+126300

=326700