The Polaris Company uses a job-order costing system. The following data relate to October, the first month of the companys fiscal year.

a.	Raw materials purchased on account, $210,000.
b.	Raw materials issued to production, $190,000 ($178,000 direct materials and $12,000 indirect materials).
c.	Direct labor cost incurred, $90,000; indirect labor cost incurred, $110,000.
d.	Depreciation recorded on factory equipment, $40,000.
e.	Other manufacturing overhead costs incurred during October, $70,000 (credit Accounts Payable).
f.	The company applies manufacturing overhead cost to production on the basis of $8 per machine-hour. A total of 30,000 machine-hours were recorded for October.
g.	Production orders costing $520,000 according to their job cost sheets were completed during October and transferred to Finished Goods.
h.	Production orders that had cost $480,000 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold on account at 25% above cost.

Required:

1.

Prepare journal entries to record the information given above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Raw materials purchased on account 210,000

Transaction General Journey Debit Credit

A

Raw materials issued to production, $119,000 ($178,000 direct materials and $12,000 indirect materials)

Transaction General Journey Debit Credit

B

Direct Labor Cost incurred, $90,000; indirect labor cost incurred, $110,000

Transaction General Journey Debit Credit

C

Depreciation recorded on factory equipment, $40,000

Transaction General Journey Debit Credit

D

Other man ufacturing overhead cost incrred during October $70,000 (credit Accounts Payable)

Transaction General Journey Debit Credit

E

The company applies manufactring overhead cost to production on the basis of $8 per machine-hour. A total of 30,000 machine-hours were recorded for October

Transaction General Journey Debit Credit

F.

Production orders costing $520,000 according to their job cost sheets were completed during october and transferred to Finished goods

Transaction General Journey Debit Credit

G.

Record the cost of goods sold

Transaction General Journey Debit Credit

H(1)

REcord the sales account

Transaction General Journey Debit Credit

h(2)

2.

Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant information above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $42,000.

MANUFACTURING OVERHEAD

beg bal
end bal

WORK IN PROGRESS

beg bal
end bal