FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Jurvin Enterprises is a manufacturing company with no beginning inventories. A subset of the transactions it recorded during a recent
month is shown below.
a. Purchased $75,700 in raw materials for cash.
b. $72,800 in raw materials were used in production. Of this amount, $65,500 was direct materials and the remainder was indirect
materials.
c. Paid employees $150,500 cash. Of this amount, $133,400 was direct labor and the remainder was indirect labor.
d. Paid $126,100 for additional manufacturing overhead costs.
e. Applied manufacturing overhead of $122,500 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 was closed to Cost of Goods Sold.
Required:
1. Post the above transactions to T-accounts.
2. Calculate the adjusted cost of goods sold for the period.
Post the above transactions to T-accounts.
Ending balance
b.
Complete this question by entering your answers in the tabs below.
Required 1
Beginning balance
C.
e.
Required 2
Beginning balance
Ending balance
C.
d.
b.
Debit
Debit
Beginning balance
✓
✔
Debit
› › ›
✓
Cash
✓
Work in Process
17,100 X
133,400✔
150,500
Manufacturing Overhead
0
17,800 X
125,800 X
3,200 x
Credit
75,700 a.
150,500✔ C.
126,100✔ d.
352,300
Credit
f.
Credit
128,100 (X)|e.
Answer is not complete.
›››
Beginning balance
a.
Ending balance
|f.
Beginning balance
Ending balance
Debit
h.
Debit
g.
Beginning balance
Debit
✓
✓
✓
Raw Materials
75,700✔
2,900
Finished Goods
126,100 x
Cost of Goods Sold
30,000 X
Credit
72,800✔ b.
Credit
126,100 X
f.
Credit
x
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Step 1: Introduce to T-accounts and Underapplied Overhead :
VIEW Step 2: Working for indirect materials, indirect labor and under-applied overhead :
VIEW Step 3: Working for actual manufacturing overhead
VIEW Step 4: Working for underapplied overhead
VIEW Step 5: Working for adjusted cost of goods sold
VIEW Solution
VIEW 
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- (Multiple Choice) A multi-step income statement ________. A. separates cost of goods sold from operating expenses B. considers interest revenue an operating activity C. is another name for a simple income statement D. combines cost of goods sold and operating expensesarrow_forward7. Consider the following: Code: A= Gross Profit to Net Sales Ratio B= Gross Profit to Cost of Goods Sold Ratio Which equation is correct? B = A a. 1 - A b. B = 1 + A A с. B = 1 - A A d. B = A 1 + Aarrow_forwardLopez Corporation incurred the following costs while manufacturing its product. Materials used in product Depreciation on plant Property taxes on store Labor costs of assembly-line workers Factory supplies used $121,000 61,000 7,600 111,000 24,000 Advertising expense Property taxes on plant Delivery expense Sales commissions Salaries paid to sales clerks $46,000 15,000 22,000 36,000 51,000 Work in process inventory was $13,000 at January 1 and $16,600 at December 31. Finished goods inventory was $61,000 at January 1 and $45,700 at December 31.arrow_forward
- 10. Choose the options to correctly complete the following statement. Some balance sheet and income statement accounts that vary directly with sales include: 1. Cost of goods sold II. Depreciation III. Accounts payable IV. Accounts receivable O I, II, III only O I, II, IV only O I, III, IV only O I, II, III, and IVarrow_forwardThe amount recorded for net cost of purchases includes all of the following EXCEPT: Purchase discounts. Freight costs paid by the seller. Returns and allowances. Freight costs paid by the buyer.arrow_forward3. As product costs expire(expensed), they become part of a. selling expenses. b. inventory. C. cost of goods sold. d. sales revenue.arrow_forward
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