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help me solve problems 1-2 The Polaris Company uses a job-order costing system. The following transactions occurred in October a. Raw materials purchased on account,
help me solve problems 1-2
The Polaris Company uses a job-order costing system. The following transactions occurred in October a. Raw materials purchased on account, $211,000. b. Raw materials used in production, $189,000 ($151,200 direct materials and $37,800 indirect materials) c. Accrued direct labor cost of $48,000 and indirect labor cost of $21000. d. Depreciation recorded on factory equipment, $105,000 e. Other manufacturing overhead costs accrued during October $130,000 1 The company applies manufacturing overhead cost to production using a predetermined rate of $10 per machine hour. A total of 76,000 machine-hours were used in October. g. Jobs costing $511,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $452,000 to complete according to their job cost sheets were shipped to customers during the month. These Jobs were sold on account at 40% 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 $35,000 Step by Step Solution
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