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. $75,800 in raw materials were purchased for cash. $71,900 in raw materials were used in production. Of this amount, $66,200 was for direct materials and the remainder was for indirect materials. Total labor wages of $150,700 were incurred and paid. Of this amount, $134,200 was for direct labor and the remainder was for indirect labor. Additional manufacturing overhead costs of $125,100 were incurred and paid. Manufacturing overhead of $126,300 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.

Answer 1

Cash					Raw Materials
Beg.bal					Beg.bal
		75,800	a.		a.	75,800
		150,700	c.				71,900	b.
		125,100	d.
end bal		351,600			end bal	3,900
Work in process					finished goods
Beg.bal					Beg.bal
b.	66,200				f.	342,000
c.	134,200						342,000	g.
e.	126,300
		342,000	f.
end bal	0				end bal	0
Manufacturing overhead					cost of goods sold
Beg.bal					beg bal	0
b.	5,700				g.	342,000
c.	16,500				h.	21,000
d.	125,100
		126,300	e
		21,000	h
End bal	0				end bal	363,000

Adjusted cost of goods sold				363,000