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. $75,300 in raw materials were purchased for cash.
2. $71,500 in raw materials were used in production. Of this amount, $67,000 was for direct materials and the remainder was for indirect materials.
3. Total labor wages of $152,200 were incurred and paid. Of this amount, $134,800 was for direct labor and the remainder was for indirect labor.
4. Additional manufacturing overhead costs of $125,400 were incurred and paid.
5. Manufacturing overhead of $120,300 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.

Required:

1. Post the above transactions to T-accounts.
2. Determine the adjusted cost of goods sold for the period.

Answer 1

Cash					Raw Materials
Beg.bal					Beg.bal
		75,300	a.		a.	75,300
		152,200	c.				71,500	b.
		125,400	d.
end bal		352,900			end bal	3,800
Work in process					finished goods
Beg.bal					Beg.bal
b.	67,000				f.	322,100
c.	134,800						322,100	g.
e.	120,300
		322,100	f.
end bal	0				end bal	0
Manufacturing overhead					cost of goods sold
Beg.bal					beg bal	0
b.	4,500				g.	322,100
c.	17,400				h.	27,000
d.	125,400
		120,300	e
		27,000	h
End bal	0				end bal	349,100
Adjusted cost of goods sold				349,100