Chapter 3 Homework

Problem 1 (E3-2)
Jurvin Enterprises is a manufacturing company that had ㅇ no beginning inventories. A subset of the
transactions that it recorded during a recent month is shown below.

a. $94,000 in raw materials were purchased for cash.

b. $89,000 in raw materials
16
were used in production. Of this amount, $78,000 was for direct
000
materials and the remainder was for indirect materials.
.

c. Total labor wages of $132,000 were incurred and paid. Of this amount, $112,000 was for direct
20 000
labor and the remainder was for indirect labor.
.

d. Additional manufacturing overhead costs of $143,000 were incurred and paid.

e. Manufacturing overhead of $152,000 was applied to production using the company’s
predetermined overhead rate.M
6 . 000 + 112 000 f 152 000 342 000 -
.
=
.

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.
anderapplred or
ouerapplied OH → COGS

Required:
1. Post the above transactions to T-accounts.
2. Determine the adjusted cost of goods sold for the period. 만
364 .
000

a Raw (uaterials 94 000

Manufacturrng ouerhead Raw (Maferials

. .

Cash 94 .
000

ob
11 00 . ( 52 . 000 회 a 94 .
000 78000 b
마 work in Process 78 .
000 륙 20 .
000
( 1 ooob

Ravw (Materials M8 000

d 143 .
000
.

Manufaturrng
( overhead 11 000 e
2200 ㅇ
5

[
.

. 000

Raw Maferials 11 .
000 underapp ( ied
work in Process
C .
work in Process 112000 Accounts
Payable
b 78000
salaries &
wages pPayable 112 . 000 34g .
000 승 1KR 000 d
일 [ 12 000

Manufacturing overhead
.

20 0 D 0
@ 152000
.

Salaries & 20 000

wages Payable .

143 000
d
IManufaturing Owerhead ( K3
.

. 000

Acoounts Payable 143 000

FinishedGoods Salariesand wages payable
.

e work in Process 152 000 A 342 000 342 000

g
.

112 c
.

000
. .

Manafacturing
( overhead 152 . 000
20 0D 0
.
C

f .
Finrshed Goods 342 .
000

work어 Process 342 000 .

( 32 000 .

sold
CostofGoodsg 342 .
000

Finished Goods 342 Cash

.
000 Cost oAGoodssold
94
g 342 . 000 . 000 a

n 22 000 .

)
364 .
000 94 .
000

Adjusfed CoGS
 Problem2 (E3-6)
The following data from the just completed year are taken from the accounting records of Mason
Company:

Sales $524,000 W
Direct labor cost $ 70,000 V
Raw material purchases $118,000 U
Selling expenses $140,000
Administrative expenses $ 63,000
) selling & admin .

expenses ( 140 000 t 6 m 000)

.

Manufacturing overhead applied to work in process$ 90,000 V

Actual manufacturing overhead costs $ ⑦
80,000 V Applied : 90 .
000

$ 10 . 000 0
uerapplied
Inventories Beginning Ending
Raw materials $ 7,000 U $15,000 U
Work in process$ 10,000U $ 5,000 V
Finished goods $ 20,000 V$35,000 W

Required:
1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were
direct materials. JDUFO
2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied
overhead is closed to Cost of Goods Sold.
3. Prepare an income statement.
xI
<Uanufacturedluason
Company scheduleof Cost of Goods
)
- ( 로 < Income statement)

Diret materrals : Sales $ 524 .

000

250 000
Beginning raw materrals inventory n 000
.
Cost oA goodssold .

Add Purhasesof raw materials 118 000 Gross $ 274

mangin
: . .
000

materialsavailable 125 203

Total
Sellrng & admin expenses
000 000
raw , .
.

( 15 $ n1 000
Less Ending
rawmaterralsinventory ) Net
operafing income
: .
000 ,

Raw materials used in producfion 110 . 000

Less : Indinect materials induded in

manufacturing overhead (O ) 110000

Direct labor n0 . 000

overhead
Manu
facturing applred to work in
process 90000
Total Manufacturing
( costs
270000
Add
Beginning work Tn
invenfory
:
process 10 000
.

Total work in
process for the perrod 280 000 .

Less : Ending inrentory

work in
process (5 .
000 )

Cost of
goods manafactured 2 n 5 000.

2 < Mason Schedule of cosf of Goodsso ( d >

Company
-

Beginning finished goods inventory 2O

.
000

Add : Cost of manafactured 2n 5 000

goods .

Cost of aVailable for sale 295

goods .
000

finished
Less .
Ending goods inventory (조 5 000 )
.

Onadjusted cost of
goodssold 260 .
000

Add : overheadove
rapplied 10 .
000

Adjusted cost oA
goodssold 250000