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.

1. $75,100 in raw materials were purchased for cash.
2. $72,100 in raw materials were used in production. Of this amount, $66,900 was for direct materials and the remainder was for indirect materials.
3. Total labor wages of $151,600 were incurred and paid. Of this amount, $134,400 was for direct labor and the remainder was for indirect labor.
4. Additional manufacturing overhead costs of $125,200 were incurred and paid.
5. Manufacturing overhead of $120,600 was applied to production using the company’s predetermined overhead rate.
6. All of the jobs in process at the end of the month were completed.
7. All of the completed jobs were shipped to customers.
8. 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

cash account

particular amount particular amount

rae material $75,100.00

work in progress $1,34,400.00

manufacturing overhead $17,200.00

manufacturing overhead $1,25,200.00

balance c/f $3,51,900.00

total $3,51,900.00 total $3,51,900.00

work in progress

particular amount particular amount

raw material $66,900.00

cash $1,34,400.00

manufacturing overhead $1,20,600.00

balance c/f $3,21,900.00

total $3,21,900.00 total $3,21,900.00

manufacturing overhead account

particular amount particular amount

raw material $5,200.00 Work in progress $1,20,600.00

cash $17,200.00 cost of goods sold $27,000.00

cash $1,25,200.00

total $1,47,600.00 total $1,47,600.00

Raw material account

particular amount particular amount

cash $75,100.00

Work in progress $66,900.00

manufacturing overhead $5,200.00

balance c/f $3,000.00

total $75,100.00 total $75,100.00

finished goods account

particular amount particular amount

Cost of goods sold $3,21,900.00

balance c/f $3,21,900.00

total $0.00 total $3,21,900.00

Cost of goods sold acc

particular amount particular amount

finished goods $3,21,900.00

manufacturing overhead $27,000.00

balance c/f $3,48,900.00

total $3,48,900.00 total $3,48,900.00

2. cost of goods sold = cost of finished goods + manufacturing overhead

,=321900+27000=$348900