Question Completion:
1. Post the above transactions to T-Accounts
2. Determine the adjusted costs of good sold for the period.
Answer:
Jurvin Enterprises
1. T- Accounts:
Date Description Debit Credit
Raw Materials Account
a. Cash $94,000
b. Work in Process Account $89,000
Balance 5,000
Cash Account
a. Raw Materials Account $94,000
c. Wages Account 132,000
d. Manufacturing Overhead Account 143,000
Work in Process Account
b. Raw Materials $89,000
c. Wages Account 132,000
e. Manufacturing Overhead 152,000
f. Cost of Goods Sold $373,000
Wages Account
c. Cash Account $132,000
c. Work in Process Account $132,000
Manufacturing Overhead Account
d. Cash Account $143,000
e. Work in Process Account $152,000
g. Cost of Goods Sold 11,000
Cost of Goods Sold Account
f. Work in Process Account $373,000
g. Overapplied Overhead $11,000
Explanation:
a) Data is as given in the question.
b) The Cost of Goods Sold totals $373,000 being the value of Work in Process that is transferred when all the jobs in progress at the end of the month were completed and shipped to customers.
c) The overapplied overhead arises from the difference between the overhead applied to work in process and the actual manufacturing overhead incurred.
