Sefcovic Enterprises LLC Recorded the Following Transactions for the Just

question 252

Essay

Sefcovic Enterprises LLC recorded the following transactions for the just completed month.The company had no beginning inventories.
(1)Raw materials purchased for cash, $110,000
(2)Direct materials requisitioned for use in production, $79,000
(3)Indirect materials requisitioned for use in production, $15,000
(4)Direct labor wages incurred and paid, $125,000
(5)Indirect labor wages incurred and paid, $22,000
(6)Additional manufacturing overhead costs incurred and paid, $134,000
(7)Manufacturing overhead costs applied to jobs, $125,000
(8)All of the jobs in process were completed.
(9)All of the completed jobs were shipped to customers.
(10)Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold.
Required:
a.Post the above transactions to the following T-accounts: b.Determine the adjusted cost of goods sold for the month.

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Definitions:

Proprietor

An individual who owns a business establishment or sole proprietorship, having full control and responsibility for its operations and profits.

Corporate Shareholders

Individuals or entities that legally own one or more shares of stock in a corporation, thus having a claim on a part of its assets and earnings.

Limited Liability

A legal structure that limits the personal financial risk of the company's shareholders to their investment in the company.

Current Services

services that are performed and paid for within the current accounting period, affecting the period's financial statements.