Exercise 3-2 Prepare T-Accounts [LO3-2, LO3-4) Jurvin Enterprises recorded the f

Question

Exercise 3-2 Prepare T-Accounts [LO3-2, LO3-4) Jurvin Enterprises recorded the following transactions for the just completed month. The company had no beginning inventories. a. $75,000 in raw materials were purchased for cash b $72.400 in raw materials were used in production. Of this amount, $65,900 was for direct materials and the remainder was for indirect materials c Total labor wages of $150,600 were incurred and paid. Of this amount, $134,000 was for direct labor and the remainder was fo. indirect labor d. Additional manufacturing overhead costs of $126,600 were incurred and paid e. Manufacturing overhead of $122.700 was applied to production using the company's predetermined overhead rate. f. All of the jobs in process at the end of the month were completed. g. All of the completed jobs were shipped to customers. h 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.

Explanation / Answer

T- Accounts Cash Beg. Bal 75000 (a) 126600 (d) 0 201600 End. Bal 201600 Work in process Beg. Bal (b) 65900 322600 (f) © 134000 € 122700 322600 322600 End. Bal 0 Manufacturing Overhead Beg. Bal (b) 6500 122700 € © 16600 27000 (h) (d) 126600 149700 149700 End. Bal 0 Raw material Beg. Bal (a) 75000 72400 (b) 75000 72400 End. Bal 2600 Finished Goods Beg. Bal (f) 322600 322600 (g) 322600 322600 End. Bal 0 Cost of goods sold Beg. Bal (g) 322600 (h) 27000 349600 0 End. Bal 349600 2. Determine the adjusted cost of goods sold for the period. $3,49,600

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