FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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.
- $75,600 in raw materials were purchased for cash.
- $71,400 in raw materials were used in production. Of this amount, $65,500 was for direct materials and the remainder was for indirect materials.
- Total labor wages of $150,400 were incurred and paid. Of this amount, $133,900 was for direct labor and the remainder was for indirect labor.
- Additional
manufacturing overhead costs of $126,500 were incurred and paid. - Manufacturing overhead of $119,900 was applied to production using the company’s predetermined overhead rate.
- All of the jobs in process at the end of the month were completed.
- All of the completed jobs were shipped to customers.
- 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.
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