Jurvin Enterprises is a manufacturing company with no beginning inventories. A subset of the transactions it recorded during a recent month is shown below. a. Purchased $75,700 in raw materials for cash. b. $71,700 in raw materials were used in production. Of this amount, $65,200 was direct materials and the remainder was indirect materials. c. Paid employees $152,700 cash. Of this amount, $133,700 was direct labor and the remainder was indirect labor. d. Paid $126,000 for additional manufacturing overhead costs. e. Applied manufacturing overhead of $130,500 to production using the company's predetermined overhead rate. f. All of the jobs in process at the end of the month were completed. g. All of the completed jobs were shipped to customers. h. Any underapplied or overapplied overhead was closed to Cost of Goods Sold. Required: 1. Post the above transactions to T-accounts. 2. Calculate the adjusted cost of goods sold for the period.

Jurvin Enterprises is a manufacturing company with no beginning inventories. A subset of the transactions it recorded during a recent month is shown below. a. Purchased $75,700 in raw materials for cash. b. $71,700 in raw materials were used in production. Of this amount, $65,200 was direct materials and the remainder was indirect materials. c. Paid employees $152,700 cash. Of this amount, $133,700 was direct labor and the remainder was indirect labor. d. Paid $126,000 for additional manufacturing overhead costs. e. Applied manufacturing overhead of $130,500 to production using the company's predetermined overhead rate. f. All of the jobs in process at the end of the month were completed. g. All of the completed jobs were shipped to customers. h. Any underapplied or overapplied overhead was closed to Cost of Goods Sold. Required: 1. Post the above transactions to T-accounts. 2. Calculate the adjusted cost of goods sold for the period.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Wedge Company paid $8,000 for materials (all of which was used in production during the year), $7,000 to manufacturing workers, $4,000 to office workers, $5,000 for the factory utilities, and $1,000 for office utilities. During the year, the company manufactured 1,000 parts and sold 750 of them. There were no units in beginning inventory at the start of the period. 1. What was Wedge’s cost of goods sold for the year? [ Select ] ["$25,000", "$20,000", "$18,750", "$15,000"] 2. What was the value of Wedge’s inventory at the end of the year?
Forest Components makes aircraft parts. The following transactions occurred in July. Purchased $119,000 of materials on account. Issued $117,600 in direct materials to the production department. Issued $8,400 of supplies from the materials inventory. Paid for the materials purchased in transaction (1) using cash. Returned $15,400 of the materials issued to production in (2) to the materials inventory. Direct labor employees earned $217,000, which was paid in cash. Purchased miscellaneous items for the manufacturing plant for $120,400 on account. Recognized depreciation on manufacturing plant of $245,000. Applied manufacturing overhead for the month. Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate. At the beginning of the year, management estimated that direct labor costs for the year would be $3,000,000. Estimated overhead for the year was $2,790,000. The following balances appeared in the…
Larned Corporation recorded the following transactions for the just completed month. Purchased $89,000 of raw materials on account. $87,000 in raw materials were used in production. Of this amount, $74, 000 was direct materials and the remainder was indirect materials. Paid employees $127,500 cash. Of this amount, $104, 400 was direct labor and the remainder was indirect labor. Depreciation of $191,000 was incurred on factory equipment. Required: Record the above transactions in journal entries.
Jurvin Enterprises is a manufacturing company with no beginning inventories. A subset of the transactions it recorded during a recent month is shown below. a. Purchased $75,700 in raw materials for cash. b. $72,800 in raw materials were used in production. Of this amount, $65,500 was direct materials and the remainder was indirect materials. c. Paid employees $150,500 cash. Of this amount, $133,400 was direct labor and the remainder was indirect labor. d. Paid $126,100 for additional manufacturing overhead costs. e. Applied manufacturing overhead of $122,500 to production using the company's predetermined overhead rate. f. All of the jobs in process at the end of the month were completed. g. All of the completed jobs were shipped to customers. h. Any underapplied or overapplied overhead was closed to Cost of Goods Sold. Required: 1. Post the above transactions to T-accounts. 2. Calculate the adjusted cost of goods sold for the period. Post the above transactions to T-accounts. Ending…
Larned Corporation recorded the following transactions for the just completed month. Purchased $73, 000 of raw materials on account. $71,000 in raw materials were used in production. Of this amount, $58,000 was direct materials and the remainder was indirect materials. Paid employees $130,000 cash. Of this amount, $102, 400 was direct labor and the remainder was indirect labor. Depreciation of $191,000 was incurred on factory equipment. Required: Record the above transactions in journal entries. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Lehigh Manufacturing Corporation was started with the issuance of common stock for $60,000. It purchased $14,000 of raw materials and worked on three job orders during Year 1 for which data follow. (Assume that all transactions are for cash unless otherwise indicated.) Direct Raw Materials Used $2,800 Job 1 Job 2 4,000 Job 3 6,000 Total $12,800 Direct Labor $ 6,000 8,000 4,000 $18,000 Factory overhead is applied using a predetermined overhead rate of $0.60 per direct labor dollar. Jobs 2 and 3 were completed during the period and Job 3 was sold for $20,000 cash. Lehigh paid $800 for selling and administrative expenses. Actual factory overhead was $11,300. Required a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example. c. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the amount is insignificant. d. Prepare a schedule of cost of goods…
The Juarez Corporation incurred the following transactions during its first year of operations. (Assume all transactions involve cash). 1) Acquired $1,800 of capital from the owners. 2) Purchased $380 of direct raw materials. 3) Used $280 of these direct raw materials in the production process. 4) Paid production workers $480 cash. 5) Paid $280 for manufacturing overhead (applied and actual overhead are the same). 6) Started and completed 260 units of inventory. 7) Sold 130 units at a price of $6 each. 8) Paid $120 for selling and administrative expenses. The amount of cost of goods manufactured would be:
ok ht D ences 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. a. $76,000 in raw materials were purchased for cash. b. $71,700 in raw materials were used in production. Of this amount, $66,000 was for direct materials and the remainder was for indirect materials. c. Total labor wages of $151,900 were incurred and paid. Of this amount, $134,900 was for direct labor and the remainder was for indirect labor. d. Additional manufacturing overhead costs of $126,400 were incurred and paid. e. Manufacturing overhead of $127,100 was applied to production using the company's predetermined overhead rate. f. All of the jobs in process at the end of the month were completed. g. All of the completed jobs were shipped to customers. h. Any underapplied or overapplied overhead for the period was closed to Cost of Goods Sold. Required: 1. Post the above transactions to T-accounts. 2.…
Zachary Manufacturing Corporation was started with the issuance of common stock for $70,000. It purchased $7,600 of raw materials and worked on three job orders during Year 1 for which data follow. (Assume that all transactions are for cash unless otherwise indicated.) Direct Raw Materials Used Direct Labor Job 1 $ 1,100 $ 2,100 Job 2 2,000 3,700 Job 3 3,400 2,100 Total $ 6,500 $ 7,900 Factory overhead is applied using a predetermined overhead rate of $0.70 per direct labor dollar. Jobs 2 and 3 were completed during the period and Job 3 was sold for $11,070 cash. Zachary paid $700 for selling and administrative expenses. Actual factory overhead was $6,130. Required a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example.
Jurvin Enterprises is a manufacturing company with no beginning inventories. A subset of the transactions it recorded during a recent month is shown below. a. Purchased $75,700 in raw materials for cash. b. $71,200 in raw materials were used in production. Of this amount, $66,600 was direct materials and the remainder was indirect materials. c. Paid employees $152,900 cash. Of this amount, $134,500 was direct labor and the remainder was indirect labor. d. Paid $126,000 for additional manufacturing overhead costs. e. Applied manufacturing overhead of $128,000 to production using the company's predetermined overhead rate. f. All of the jobs in process at the end of the month were completed. g. All of the completed jobs were shipped to customers. h. Any underapplied or overapplied overhead was closed to Cost of Goods Sold. Required: 1. Post the above transactions to T-accounts. 2. Calculate the adjusted cost of goods sold for the period. Complete this question by entering your answers in…
The following information is obtained from the records of Al Marai manufacturing company for the month of January 2021. Particulars Amount (OMR) Direct material consumed 41,000 Direct manufacturing wages 17,000 Indirect manufacturing wages 5,500 Supervisor salary 2,000 Factory rent 1,500 Factory lighting 1000 Indirect materials 1200 Depreciation of machines Office overheads 5,000 Office salaries 1,000 Office expense 800 Selling and distribution 2,300 overheads Sales 95,000 Based on the above information prepare the cost sheet and select the correct answer for the following elements: The amount of prime cost is OMR; The amount of works cost is OMR; The cost of production is OMR; The total cost of sales is OMR; The profit is OMR;