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Exercise 3-2 Prepare T-Accounts [LO3-2, LO3-4] Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the transactions that it recorded
Exercise 3-2 Prepare T-Accounts [LO3-2, LO3-4]
Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the transactions that it recorded during a recent month is shown below.
- $76,800 in raw materials were purchased for cash.
- $71,000 in raw materials were used in production. Of this amount, $66,200 was for direct materials and the remainder was for indirect materials.
- Total labor wages of $151,600 were incurred and paid. Of this amount, $133,800 was for direct labor and the remainder was for indirect labor.
- Additional manufacturing overhead costs of $125,900 were incurred and paid.
- Manufacturing overhead of $120,500 was applied to production using the companys predetermined overhead rate.
- All of the jobs in process at the end of the month were completed.
- All of the completed jobs were shipped to customers.
- Any underapplied or overapplied overhead for the period was closed to Cost of Goods Sold.
Required:
- Post the above transactions to T-accounts.
- Determine the adjusted cost of goods sold for the period.
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