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. $75,700 in raw materials were purchased for cash

b. $71,600 in raw materials were used in production. Of this amount, $65,400 was for direct materials and the remainder was for indirect matierals.

c. Total labor wages of $150,500 were incurred and paid. Of this amount, $133,200 was for direct labor and the remainder was for indirect labor.

d. Additional manufacturing overhead costs $125,800 were incurred and paid.

e. Manufacutring overhead of $119,300 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 undersupplied or oversupplied 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

Cash					Raw Materials
Beg.bal					Beg.bal
		75,700	a.		a.	75,700
		150,500	c.				71,600	b.
		125,800	d.
end bal		352,000			end bal	4,100
Work in process					finished goods
Beg.bal					Beg.bal
b.	65,400				f.	342,000
c.	133,200						342,000	g.
e.	119,300
		342,000	f.
end bal	0				end bal	0
Manufacturing overhead					cost of goods sold
Beg.bal					beg bal	0
b.	6,200				g.	342,000
c.	17,300				h.	30,000
d.	125,800
		119,300	e
		30,000	h
End bal	0				end bal	372,000
Adjusted cost of goods sold				372,000