Thursday, 10 April 2014

Jurvin Enterprises recorded the following transactions for the just completed month. The company had no beginning inventories.



Brief Exercise 2-7 Prepare T-Accounts [LO7, LO8]
[The following information applies to the questions displayed below.]

Jurvin Enterprises recorded the following transactions for the just completed month. The company had no beginning inventories.

a.
$75,100 in raw materials were purchased for cash.
b.
$72,500 in raw materials were requisitioned for use in production. Of this amount, $65,300 was for direct materials and the remainder was for indirect materials.
c.
Total labor wages of $152,400 were incurred and paid. Of this amount, $134,300 was for direct labor and the remainder was for indirect labor.
d.
Additional manufacturing overhead costs of $125,600 were incurred and paid.
e.
Manufacturing overhead costs of $138,300 were applied to jobs using the company's predetermined overhead rate.
f.
All of the jobs in progress at the end of the month were completed and shipped to customers.
g.
Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold.
Brief Exercise 2-7 Requirement 1
Requirement 1:
Post the above transactions to T-accounts. (Record the transactions in the given order. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

Cash






  (a)
  


  (c)




  (d)






Raw Materials




  (a)

  (b)
  


  Balance
  













Work in Process




  (b)
  


  (c)
  


  (e)
  
  (f)
  


  Balance
  

  











Finished Goods




  (f)

  (f)
  


  Balance
  













Manufacturing Overhead




  (b)
  
  (e)
  
  (c)
  
  (g)
  
  (d)
  




  Balance
  

  











Cost of Goods Sold




  (f)
  


  (g)
  




  Balance
    












Brief Exercise 2-7 Requirement 2
Requirement 2:
Determine the cost of goods sold for the period. (Omit the "$" sign in your response.)

  Cost of goods sold
$