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. $75,500 in raw materials were purchased for cash.
2. $72,900 in raw materials were used in production. Of this amount, $65,600 was for direct materials and the remainder was for indirect materials.
3. Total labor wages of $151,200 were incurred and paid. Of this amount, $133,000 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 $128,800 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

Raw Material Control Account
Dr.			Cr.
Particulars	Amount	Particulars	Amount
To General Ledger	75,500.00	Work in progress Control Account	65,600.00
		Production over head control account	9,900.00
	75,500.00		75,500.00
Work in progress Control Account
Dr.			Cr.
Particulars	Amount	Particulars	Amount
To Raw Material	65,600.00	Finished Goods Control Account	327,400.00
To Wages Control Account	133,000.00	(Balancing Figure)
To Work in progress account.	128,800.00
	327,400.00		327,400.00

Production over head control account
Dr.			Cr.
Particulars	Amount	Particulars	Amount
To Raw Material	9,900.00	Work in progress account	128,800.00
To Wages Control Account	18,200.00	Cost of Goods sold account(B/F)	24,600.00
To General Ledger	125,300.00
	153,400.00		153,400.00

Wages Control Account Dr
Dr.			Cr.
Particulars	Amount	Particulars	Amount
To General Ledger Account	151,200.00	Work in progress control account .	133,000.00
		Production Control Account .	18,200.00
	151,200.00		151,200.00

Finished Good control
Dr.			Cr.
Particulars	Amount	Particulars	Amount
To Work in progress control	327,400.00	Cost of Good sold	327,400.00
	327,400.00		327,400.00

Cost of Goods sold account
Dr.			Cr.
Particulars	Amount	Particulars	Amount
To Finished Goods Control	327,400.00	To Sundry Debtors	352,000.00
T Production Overhead Control	24,600.00
	352,000.00		352,000.00

Journal Entries
Sr.No	Particulars	Debit	Credit
1	Raw Material Control Account Dr.	75,500.00
	To Cash		75,500.00
2	Work in progress Control Account Dr.	65,600.00
	To Raw material		65,600.00
3	Production over head control account	9,900.00
	To Raw material Control		9,900.00
4	Wages Control Account Dr	151,200.00
	To Cash		151,200.00
5	Work in progress control account Dr.	133,000.00
	Production Control Account Dr.	18,200.00
	To Wages control account		151,200.00
6	Production Control Account Dr.	125,300.00
	To Cash		125,300.00
7	Work in progress account Dr.	128,800.00
	To Production Control Account		128,800.00