EXERCISE 3-2 Prepare T-Accounts LO3-2, LO3-4 Jurvin Enterprises recorded the fol

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. $94,000 in raw materials were purchased for cash. b. $89,000 in raw materials were used in production. Of this amount, $78,000 was for direct materials and the remainder was for indirect materials c. Total labor wages of $132,000 were incurred and paid. Of this amount, $112,000 was for direct labor and the remainder was for indirect labor Additional manufacturing overhead costs of $143,000 were incurred and paid Manufacturing overhead of $152,000 was applied to production using the company's prede- termined overhead rate d. e. 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

1.

2. Adjusted cost of goods sold = $342000 + $22000 =$364000

Raw Materials Inventory Beg. Bal. 0 89000 b. a. 94000 End. Bal. 5000 Work in Process Inventory Beg. Bal. 0 342000 f. b. 78000 c. 112000 e. 152000 End. Bal. 0 Finished Goods Inventory Beg. Bal. 0 342000 g. f. 342000 End. Bal. 0 Manufacturing Overheads b. 11000 152000 e. c. 20000 22000 h. d. 143000 End. Bal. 0 Cost of Goods Sold g. 342000 h. 22000 End. Bal. 364000

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