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. $76,900 in raw materials were purchased for cash. 6.572,200 in raw materials were used in production of this amount, $65,100 was for direct materials and the remainder was for indirect materials. c. Total labor wages of $152,300 were incurred and paid. Of this amount, $133,700 was for direct labor and the remainder was for indirect labor d. Additional manufacturing overhead costs of $126,500 were incurred and paid. e Manufacturing overhead of $128,200 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. 9. 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

Answer-:

1).

Cash		Raw Materials
Beg. Bal.		a.	76900	Beg. Bal.
		c.	152300	a.	76900	b.	72200
		d.	126500
End. Bal.			$355700	End. Bal.	$4700
Work in Process	Finished Goods
Beg. Bal.				Beg. Bal.
b.	65100	f.	327000	f.	327000	g.	327000
c.	133700
e.	128200
End. Bal.	$0			End. Bal.	$0
Manufacturing Overhead	Cost of Goods Sold
Beg. Bal.				Beg. Bal.
b.	7100	e.	128200	g.	327000
c.	18600	h.	24000	h.	24000
d.	126500
End. Bal.	$0			End. Bal.	$351000

Actual manufacturing overhead= $7100+$18600+$126500 = $152200

Underapplied or overapplied overhead= Actual manufacturing overhead-Applied manufacturing overhead

= $152200-128200= $24000 underapplied.

2). Adjusted cost of goods sold= cost of goods sold + underapplied overhead

= 327000+ 24000

= $ 351000

Thankyou.......