In: Accounting
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.
Required:
Post the above transactions to T-accounts.
|
Determine the adjusted cost of goods sold for the period.
|
Solution:
here
a i = raw materials purchased
b = raw materials used in production
c = total labour wages paid
d = manufacturing overhead cost
e = manufacturing overhead was applied to production
f = jobs in process were completed
g = completed jobs shipped to customers
h = under applied or over applied overhead closed to cost of goods sold
Cash
Beg. Bal. | |||
76,500 | a | ||
150,800 | c | ||
125,500 | d | ||
End Bal. |
352,800 (76500+150800+125500) |
Raw Materials
Beg. Bal. | |||
a | 76,500 | 71,700 | b |
End. Bal. |
4,800 (71,700-76,500) |
Work in process
Beg. Bal. | |||
b | 66,800 |
321,000 (66800+134000+120200) |
f |
c | 134,000 | ||
e | 120,200 | ||
End. Bal. |
Finished goods
Beg. Bal. | |||
f | 321,000 | 321,000 | g |
End. Bal. |
Manufacturing overhead
Beg. Bal. | |||
b |
4,900 (71700-66800) |
120,200 | e |
c | 16,800 |
27,000 (4900+16800+125500-120200) |
h |
d | 125,500 | ||
End. Bal. |
Cost of goods sold
Beg. Bal. | |||
g | 321,000 | ||
h | 27,000 | ||
End .Bal. |
348,000 (321000+27000) |
2. Adjusted cost of goods sold = $348,000