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. $76,800 in raw materials were purchased for cash.
2. $71,500 in raw materials were used in production. Of this amount, $65,400 was for direct materials and the remainder was for indirect materials.
3. Total labor wages of $150,700 were incurred and paid. Of this amount, $133,900 was for direct labor and the remainder was for indirect labor.
4. Additional manufacturing overhead costs of $126,700 were incurred and paid.
5. Manufacturing overhead of $123,600 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 A/C
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
		RAW MATERIAL PURCHASED	$      76,800.00
		LABOUR WAGES	$ 1,50,700.00
		MANUFACTURING OVERHEAD	$ 1,26,700.00
	$ 3,54,200.00		$ 3,54,200.00
RAW MATERIAL A/C
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
CASH	$     76,800.00	COST OG GOOD SOLD	$      65,400.00
		MANUFACTURAING OVERHEAD	$        6,100.00
		(71500-65400)
		BALANCE C/D	$        5,300.00
	$     76,800.00		$      76,800.00
WAGES A/C
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
CASH	$ 1,50,700.00	COST OG GOOD SOLD	$ 1,33,900.00
		MANUFACTURAING OVERHEAD	$      16,800.00
		(150700-133900)
	$ 1,50,700.00		$ 1,50,700.00
MANUFACTURING OVERHEAD
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
RAW MATERIAL	$       6,100.00	COST OG GOOD SOLD	$ 1,23,600.00
WAGES	$     16,800.00	BALANCE C/D	$      26,000.00
CASH	$ 1,26,700.00
(ADDITIONAL OH)
	$ 1,49,600.00		$ 1,49,600.00
BALANCE B/D	$     26,000.00	COST OG GOOD SOLD	$      26,000.00
	$ 1,49,600.00		$ 1,49,600.00
CALCULATION OF COST OF GOOD SOLDS
DIRECT MATERIAL			$      65,400.00
DIRECT WAGES			$ 1,33,900.00
MANUFACTURING OVERHEAD		$ 1,23,600.00
			$ 3,22,900.00
ADJ:UNDERAPPLIED MANUFACTURING OVERHEAD	$      26,000.00
		TOTAL	$ 3,48,900.00