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

a. $75,000 in raw materials were purchased for cash.

b. $75,000 in raw materials were requisitioned for use in production. Of this amount, $67,000was for direct materials and the remainder $6,000 was for indirect materials.

c. Total labour wages of $152,000 were incurred and paid. Of this amount, $134,000 was for direct labour and the remainder was for indirect labour.

d. Additional manufacturing overhead costs of $126,000 were incurred and paid.

e. Manufacturing overhead costs of $178,000 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. The underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold.

Required:

a. Post the above transactions to T-accounts.

b. Determine the cost of goods sold for the period

6. The following cost data relate to the manufacturing activities of Chang Company during the just completed year:

The company uses a predetermined overhead rate to apply overhead cost to production. The rate for the year was $2.5 per machine-hour. A total of 16,400 machine-hours was recorded for the year.

Manufacturing overhead costs incurred:

Indirect materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,000

Indirect labour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$7,500

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Property taxes, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,600

Utilities, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,200

Depreciation, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$12,500

Insurance, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,200

Total actual manufacturing overhead costs incurred . . . . . . . . $49,000

Other costs incurred:

Purchases of raw materials (both direct and indirect) . . . . . . . $53,000

Direct labour cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $62,000

Inventories:

Raw materials, beginning . . . . . . . . . . . . . . . . . . . . . . . . . . . . $24,000

Raw materials, ending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,000

Work in process, beginning . . . . . . . . . . . . . . . . . . . . . . . . . . . $41,000

Work in process, ending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $38,000

Finished goods, beginning................................................$86,000

Finished goods, ending ................................................$93,000

Required:

a. Compute the amount of under- or overapplied overhead cost for the year.

b. Prepare a schedule of cost of goods manufactured for the year.

c. Prepare a schedule of cost of goods sold