Question

Jurvin Enterprises recorded the following transactions for the just completed month. The company had no beginning inventories.

  

a.	$76,100 in raw materials were purchased for cash.
b.	$72,100 in raw materials were requisitioned for use in production. Of this amount, $65,500 was for direct materials and the remainder was for indirect materials.
c.	Total labor wages of $150,500 were incurred and paid. Of this amount, $133,300 was for direct labor and the remainder was for indirect labor.
d.	Additional manufacturing overhead costs of $126,700 were incurred and paid.
e.	Manufacturing overhead costs of $121,500 were applied to jobs using the company’s predetermined overhead rate.
f.	All of the jobs in progress at the end of the month were completed and shipped to customers.
g.	Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold.

   

Required:
1.	Post the above transactions to T-accounts.

      

2.	Determine the cost of goods sold for the period.

      

Answer 1

Answer 1.
Cash					Raw Materials					Work in Process
		76,100.00	a.		a.	76,100.00	72,100.00	b.		b.	65,500.00	320,300.00	f.
		150,500.00	c.							c.	133,300.00
		126,700.00	d.							e.	121,500.00
					End. Bal.	4,000.00				End. Bal.	-
Finished Goods inventory					Manufacturing Overhead					Cost of Goods Sold
f.	320,300.00	320,300.00	g.		b.	6,600.00	121,500.00	e.		g.	320,300.00
					c.	17,200.00	29,000.00	h.		h.	29,000.00
					d.	126,700.00		(Underapplied Overhead)
End. Bal.	-				End. Bal.	-				End. Bal.	349,300.00
Answer 2.
Cost of Goods Sold = $349,300