Question
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
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, $189,000 ($151,200 direct materials and $37,800 indirect materials). |
c. | Direct labor cost incurred, $50,000; indirect labor cost incurred, $21,000. |
d. | Depreciation recorded on factory equipment, $104,000. |
e. | Other manufacturing overhead costs incurred during October, $131,000 (credit Accounts Payable). |
f. | The company applies manufacturing overhead cost to production on the basis of $7 per machine-hour. A total of 76,200 machine-hours were recorded for October. |
g. | Production orders costing $515,000 according to their job cost sheets were completed during october and transferred to Finished Goods. |
h. | Production orders that had cost $450,000 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold on account at 22% 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.) | ||
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