The Polaris Company uses a job-order costing system. The following transactions occurred in October a Raw materials purchased on account $209,000 b Raw materials used in production, $192.000 ($153,600 direct materials and $38.400 indirect materials) c. Accrued direct labor cost of $48,000 and indirect labor cost of $20.000 d. Depreciation recorded on factory equipment, $104,000, e Other manufacturing overhead costs accrued during October $130,000, 1 The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine hour. A total of 76,300 machine-hours were used in October g. Jobs costing $514,000 according to their job cost sheets were completed during October and transferred to Finished Goods h Jobs that bad 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 24% 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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.) View transaction list Journal entry worksheet 1 2 3 4 5 9 7 8 6 Raw materials purchased on account, $209,000 Note: Enter debits before credits Transaction Debit General Journal Credit 1 Raw materials purchased on account, $209,000. 2 Record the raw materials issued to production, $192,000 ($158.600 direct materials and $38,400 indirect materials). 3. Record the entry for accrued direct labor cost incurred, $48,000; indirect labor cost incurred, $20,000. 4 Depreciation recorded on factory equipment, $104,000. 5 Other manufacturing overhead costs accrued during October, $130,000. The company applies manufacturing overhead cost to Note = journal entry has been entered Record entry Clear entry 5 Other manufacturing overhead costs accrued during October, $130,000. 6 The company applies manufacturing overhead cost to production on the basis of $8 per machine-hour. A total of 76,300 machine-hours were recorded for October Jobs costing $514,000 according to their job cost sheets were completed during October and transferred to Finished Goods. Record the cost of goods sold. 9 Record the sales on account. Note: = journal entry has been entered Record entry Clear entry Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the balance in each account, assuming that Work in Process has a beginning balance of $35,000. Manufacturing Overhead Work in Process Beg Bal End. Bal. End. Bal
