Question

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. $76,600 in raw materials were purchased for cash.
2. $72,400 in raw materials were used in production. Of this amount, $65,700 was for direct materials and the remainder was for indirect materials.
3. Total labor wages of $152,600 were incurred and paid. Of this amount, $133,200 was for direct labor and the remainder was for indirect labor.
4. Additional manufacturing overhead costs of $126,300 were incurred and paid.
5. Manufacturing overhead of $126,400 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.

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2

Post the above transactions to T-accounts.

	Cash Raw Materials Beg. Bal. Beg. Bal. End. Bal. End. Bal. Work in Process Finished Goods Beg. Bal. Beg. Bal. End. Bal. End. Bal. Manufacturing Overhead Cost of Goods Sold Beg. Bal. Beg. Bal. End. Bal. End. Bal.

Answer 1

Cash					Raw Materials
Beg.bal					Beg.bal
		76,600	a.		a.	76,600
		152,600	c.				72,400	b.
		126,300	d.
end bal		355,500			end bal	4,200
Work in process					finished goods
Beg.bal					Beg.bal
b.	65,700				f.	325,300
c.	133,200						325,300	g.
e.	126,400
		325,300	f.
end bal	0				end bal	0
Manufacturing overhead					cost of goods sold
Beg.bal					beg bal	0
b.	6,700				g.	325,300
c.	19,400				h.	26,000
d.	126,300
		126,400	e
		26,000	h
End bal	0				end bal	351,300
Adjusted cost of goods sold				351,300