Jurvin Enterprises recorded the following transactions for t

Jurvin Enterprises recorded the following transactions for the just completed month. The company had no beginning inventories. a. $75,200 in raw materials were purchased for cash. b. $72,600 in raw materials were requisitioned for use in production. Of this amount, $66,400 was for direct materials and the remainder was for indirect materials. c. Total labor wages of $151,000 were incurred and paid. Of this amount, $133,000 was for direct labor and the remainder was for indirect labor. d. Additional manufacturing overhead costs of $125,800 were incurred and paid. e. Manufacturing overhead costs of $120,000 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. Required: 1. Post the above transactions to T-accounts

Solution

Raw material Wages Factory overhead Ref Debit Ref Credit Ref Debit Ref Credit Ref Debit Ref Credit a 75200 b 66400 c 151000 c 133000 b 6200 e 120000 b 6200 c 18000 c 18000 g 30000 d 125800 75200 72600 151000 151000 150000 150000 Beg.Bal. 2600 Work in process Finished goods Cost of goods sold Ref Debit Ref Credit Ref Debit Ref Credit Ref Debit Ref Credit b 66400 f 319400 f 319400 f 319400 f 319400 c 133000 g 30000 e 120000 319400 319400 349400 319400 319400 Cash Ref Debit Ref Credit a 75200 c 151000 d 125800