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.
- $76,900 in raw materials were purchased for cash.
- $72,600 in raw materials were used in production. Of this
amount, $66,000 was for direct materials and the remainder was for
indirect materials.
- Total labor wages of $151,800 were incurred and paid. Of this
amount, $133,800 was for direct labor and the remainder was for
indirect labor.
- Additional manufacturing overhead costs of $126,000 were
incurred and paid.
- Manufacturing overhead of $128,600 was applied to production
using the company’s predetermined overhead rate.
- All of the jobs in process at the end of the month were
completed.
- All of the completed jobs were shipped to customers.
- Any underapplied or overapplied overhead for the period was
closed to Cost of Goods Sold.
Required:
- Post the above transactions to T-accounts.
- Determine the adjusted cost of goods sold for the period.