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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
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, $190,000 ($152,000 direct materials and $38,000 indirect materials). c. Accrued direct labor cost of $49,000 and indirect labor cost of $22,000 d. Depreciation recorded on factory equipment, $105,000. e. Other manufacturing overhead costs accrued during October, $131,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $9 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 had cost $451,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 28% 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 $36,000. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Journal entry worksheet Depreciation recorded on factory equipment, $105,000. te: Enter debits before credits. Transaction General Journal Debit Credit d. Record entry Clear entry View general Journal View transaction list Journal entry worksheet 1 2 3 4 4 4 6 6 7 8 9 Other manufacturing overhead costs accrued during October, $131,000. Note: Enter debits before credits. Transaction General Journal Debit Credit e. Record entry Clear entry View general Journal Prey 16 of 20 Next > View transaction list Journal entry worksheet The company applies manufacturing overhead cost to production on the basis of $9 per machine-hour. A total of 76,300 machine-hours were recorded for October Note: Enter debits before credits. Transaction General Journal Debit Credit f. Record entry Clear entry View general Journal Journal entry worksheet Jobs costing $514,000 according to their job cost sheets were completed during October and transferred to Finished Goods. Note: Enter debits before credits. Transaction General Journal Debit Credit g. Record entry Clear entry View general Journal Journal entry worksheet Record the cost of goods sold. Note: Enter debits before credits. Transaction General Journal Debit Credit h(1) Record entry Clear entry View general Journal Journal entry worksheet
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