1)

Mahomes LLC recorded the following transactions for the just completed month. The company had no beginning inventories.

(1) Raw materials purchased for cash, $60,000

(2) materials requisitioned for use in production, $50,000 ($ 40,000 direct, balance is indirect)

(3) Factory Depreciation, $15,000

(4) Direct labor wages incurred and paid, $100,000

(5) Indirect labor wages incurred and paid, $8,000

(6) Additional manufacturing overhead costs incurred and paid, $ 20,000

(7) Manufacturing overhead costs applied to jobs, $44,000

(8) All of the jobs in process were completed.

(9) All of the completed jobs were shipped to customers.

(10) Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold.

Required:

a. Post the above transactions to the following T-accounts:

	Cash

	Raw Materials

	Work In Process

	Finished Goods

	Manufacturing Overhead

	Cost of Goods Sold

	Accumulated Depreciation

b. Determine the adjusted cost of goods sold for the month.