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. $75,100 in raw materials were purchased for cash.
2. $72,400 in raw materials were used in production. Of this amount, $65,300 was for direct materials and the remainder was for indirect materials.
3. Total labor wages of $152,300 were incurred and paid. Of this amount, $134,200 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 $122,500 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.

Can you post the alphabetical letters the T account?

Answer 1

Requirement #1:

Cash
Event	Debit	Event	Credit
Beg Bal	$0.00	a	$75,100
		c	$152,300
		d	$125,300

Raw Materials
Event	Debit	Event	Credit
Beg Bal	$0.00	b	$72,400
a	$$75,100
End Bal	$2,700

Work In Process
Event	Debit	Event	Credit
Beg Bal	$0.00	f	$322,000
b	$65,300.00
c	$134,200.00
e	$122,500
End Bal	$0.00

Finished Goods
Event	Debit	Event	Credit
Beg Bal	$0.00	g	$322,000
f	$322,000
End Bal	$0.00

Manufacturing Overhead
Event	Debit	Event	Credit
Beg Bal	$0.00	e	$122,500
b	$7,100	h(balancing fig)	$28000
c	$18,100
d	$125,300
End Bal	$0.00

Cost of goods sold
Event	Debit	Event	Credit
Beg Bal	$0.00
g	$322000.00
h	$28,000.00
End Bal	$350000.00

Requirement# 2:

Adjusted cost of good sold = $350,000