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. a. $75,300 in raw materials were purchased for cash. b. $72,200 in raw materials were used in production. Of this amount, $65,200 was for direct materials and the remainder was for indirect materials. C. Total labor wages of $150,400 were incurred and paid. Of this amount, $134,500 was for direct labor and the remainder was for indirect labor. d. Additional manufacturing overhead costs of $125,500 were incurred and paid. e. Manufacturing overhead of $126,400 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

1.

CASH
Beg.bal
		$75300	a
		$150400	c
		$125500	d
End. Bal		$3100

RAW MATERIALS
Beg.bal
a.	$75300	$72200	b
End. Bal.	$3100

Work in progress
Beg.bal
b	$65200	$326100	f
c	$134500
e	$126400
End. Bal.	0

FINISHED GOODS
Beg.bal
f	$326100	$326100	g
End. Bal.	0

MANUFACTURING OVERHEAD
Beg.bal
b	$7000	$126400	e
c	$15900	$22000	h
d	$125500
End Bal	0

COST OF GOODS SOLD
Beg.bal
g	$326100
h	$22000
End Bal.	$348100

2.Adjusted Cost of Goods Sold

Underapplied manufacturing Overhead costs:

Applied = $126400

Actual= $7000 + $15900 + $125500 =$148400

Underapplied manufacturing Overhead costs: = $148400 - $126400 =$22000

= Cost of Goods Sold + Underapplied manufacturing Overhead costs

= $326100 + $22000 = $348100

Comment if you have any doubts. Please upvote the answer if you find this helpful. Thankyou.