Jurvin Enterprises is a manufacturing company with no beginning inventories. A subset of the transactions it recorded during a recent month is shown below.

Purchased $76,700 in raw materials for cash.
$71,000 in raw materials were used in production. Of this amount, $66,200 was direct materials and the remainder was indirect materials.
Paid employees $152,000 cash. Of this amount, $133,900 was direct labor and the remainder was indirect labor.
Paid $125,200 for additional manufacturing overhead costs.
Applied manufacturing overhead of $127,100 to production using the company’s 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 was closed to Cost of Goods Sold.
Required:

Calculate the adjusted cost of goods sold for the period.


To calculate the **Adjusted Cost of Goods Sold** for Jurvin Enterprises, we need to follow these steps:

### Step 1: Calculate the **Total Manufacturing Costs** incurred during the month
Manufacturing costs consist of **Direct Materials**, **Direct Labor**, and **Applied Manufacturing Overhead**.

- **Direct Materials** used: $66,200
- **Direct Labor**: $133,900
- **Applied Manufacturing Overhead**: $127,100

\[
\text{Total Manufacturing Costs} = 66,200 + 133,900 + 127,100 = 327,200
\]

### Step 2: Determine the **Cost of Goods Manufactured (COGM)**
Since all jobs in process at the end of the month were completed, the total manufacturing costs represent the cost of goods manufactured.

\[
\text{COGM} = 327,200
\]

### Step 3: Account for **Cost of Goods Sold (COGS)**
All completed jobs were shipped to customers, so the **COGM** is also the **Unadjusted Cost of Goods Sold (COGS)**:

\[
\text{Unadjusted COGS} = 327,200
\]

### Step 4: Adjust for **Underapplied or Overapplied Overhead**
The company applied $127,100 in manufacturing overhead but also incurred $125,200 in actual manufacturing overhead. To adjust for overapplied or underapplied overhead:

- **Applied Overhead**: $127,100
- **Actual Overhead**: $125,200

\[
\text{Overapplied Overhead} = 127,100 - 125,200 = 1,900
\]

Since the overhead was **overapplied**, we reduce the unadjusted COGS by the overapplied amount.

### Step 5: Calculate **Adjusted COGS**

\[
\text{Adjusted COGS} = 327,200 - 1,900 = 325,300
\]

### Final Answer:
The **Adjusted Cost of Goods Sold** for the period is **$325,300**.

---

Would you like further details on any step or clarification?

### Related Questions:
1. How is predetermined overhead rate calculated in manufacturing companies?
2. What are the key differences between direct and indirect labor/materials?
3. How does underapplied overhead affect financial statements?
4. What is the process for calculating Cost of Goods Manufactured (COGM)?
5. How is Cost of Goods Sold (COGS) adjusted in different manufacturing setups?

### Tip:
Always track actual and applied overhead closely to avoid discrepancies in financial reporting. Overapplied or underapplied overhead can distort profit figures.

Jurvin Enterprises is a manufacturing company with no beginning inventories. A subset of the transactions it recorded during a recent month is shown below.

Purchased $76,700 in raw materials for cash.
$71,000 in raw materials were used in production. Of this amount, $66,200 was direct materials and the remainder was indirect materials.
Paid employees $152,000 cash. Of this amount, $133,900 was direct labor and the remainder was indirect labor.
Paid $125,200 for additional manufacturing overhead costs.
Applied manufacturing overhead of $127,100 to production using the company’s 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 was closed to Cost of Goods Sold.
Required: Calculate the adjusted cost of goods sold for the period.

Learn how to calculate the adjusted cost of goods sold for Jurvin Enterprises with detailed steps. This problem covers key accounting concepts such as applied overhead, direct labor, and COGS adjustments. Suitable for college-level accounting students.

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