Question

Exercise 3-2 (Algo) Prepare T-Accounts (LO3-2, LO3-4) 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. $75,500 in raw materials were purchased for cash. b. $72,900 in raw materials were used in production. Of this amount, $66,200 was for direct materials and the remainder was for indirect materials. c. Total labor wages of $151,700 were incurred and paid. Of this amount, $133,500 was for direct labor and the remainder was for indirect labor. d. Additional manufacturing overhead costs of $125,300 were incurred and paid. e. Manufacturing overhead of $123,200 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

Solution:

1.

Cash
Beg. Bal.		75,500	a
		1,51,700	c
		1,25,300	d
End. Bal.		3,52,500

Raw Materials
Beg. Bal.
a.	75,500	72,900	b
End. Bal.	2,600

Work In Process
Beg. Bal.
b.	66,200	3,22,900	f
c.	1,33,500
e.	1,23,200
End Bal.	0

Finished Goods
Beg. Bal
f.	3,22,900	3,22,900	g
End. Bal.	0

Manufacturing Overhead
Beg. Bal.
b.	6,700	1,23,200	e
c.	18,200	27,000	h
d.	1,25,300
End. Bal.	0

Cost of goods sold
Beg. Bal.
g.	3,22,900
h.	27,000
End. Bal.	3,49,900

2.

Adjusted cost of goods sold

$349,900

The adjusted cost of goods sold is ending balance of cost of goods sold is $349,900