The Polaris Company uses a job$-$order costing system. The following transactions occurred $in$ October: Prepare T$-$accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the

each account, assuming that Work in Process has a beginning balance of $$42,000.$

eBook

$a.$ Raw materials purchased $on$ account, $$210,000.$

$b.$ Raw materials used $in$ production, $$190,000($ $$178,000$ direct materials and $$12,000$ indirect materials$).$

$c.$ Accrued direct labor cost $of$ $$90,000$ and indirect labor cost $of$ $$110,000.$

$d.$ Depreciation recorded $on$ factory equipment, $$40,000.$

$e.$ Other manufacturing overhead costs accrued during October, $$70,000.$

Hint $f.$ The company applies manufacturing overhead cost $to$ production using a predetermined rate $of$ $$8$ per machine$-$hour. A total $of$

References

$g.$ Jobs costing $$520,000$ were completed and transferred $to$ Finished Goods.

$h.$ Jobs costing $$480,000$ were shipped $to$ customers. These jobs were sold $on$ account $at25\%$ above cost.

Required:

Prepare journal entries $to$ record the transactions given above.

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 Work $in$ Process has a beginning balance $of$ $$42,000.$