Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 3-5 (Algo) Journal Entries and T-accounts [LO3-1, LO3-2] The Polaris Company uses a job-order costing system. The following transactions occurred in October: a. Raw

image text in transcribed
Exercise 3-5 (Algo) Journal Entries and T-accounts [LO3-1, LO3-2] The Polaris Company uses a job-order costing system. The following transactions occurred in October: a. Raw materials purchased on account, $210,000. b. Raw materials used in production, $192,000 ( $153,600 direct materials and $38,400 indirect materiais). c. Accrued direct labor cost of $50,000 and indirect labor cost of $21,000. d. Depreciation recorded on factory equipment, $105,000. e. Other manufacturing, overhead costs accrued during October, $13,0,000. 4. The company applies manufacturing overhead cost to productioniusing a predetermined rate of $6 per machine-hour. A total of 76,300 machine-hours were used in October: g. Jobs costing $515,000 according to their job cost sheets were completed during October and transferred to Finished Goods h. Jobs that had cost $447,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 34% above cost. Required: 1. Prepare journal entries to record the transactions given above. 2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $36,000. Complete this question by entering your answers in the tabs below. Prepare journal entries to record the transactions given above. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Worship Audit Making Good Worship Better

Authors: Mark Earcy

1st Edition

1851742948, 978-1851742943

More Books

Students also viewed these Accounting questions

Question

1.Which are projected Teaching aids in advance learning system?

Answered: 1 week ago