The Polaris Company uses a job-order costing system. The following transactions occurred in October: a. Raw materials purchased on account, $210,000 b. Raw materials used in production, $189,000 ( $151,200 direct materials and $37,800 indirect materials). c. Accrued direct labor cost of $49,000 and indirect labor cost of $21,000 d. Depreciation recorded on factory equipment, $106,000. e. Other manufacturing overhead costs accrued during October, $129,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $6 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 duting October and transferred to Finished Goods. h. Jobs that had cost $453,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 30% 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. Prepare journal entries to record the transactions given above. (If no entry is required for a transaction/event, solect wo journal entry required" in the first account field.) Journal entry worksheet repare journal entries to record the transactions given above. (If no entry is required for a transaction/event, select "No journal entry equired" in the first account field.) Journal entry worksheet 6789 Record the raw materials issued to production, $189,000($151,200 direct materials and $37,800 indirect materials). Note: Enter debits before credits. Prepare journal entries to record the transactions given above. (If no entry is required for a transaction/event, select "No fournal entry required" in the first account field.) Journal entry worksheet Record the entry for accrued direct labor cost incurred, $49,000; Indirect labor cost incurred, $21,000. Notet Einter debits before credits. 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.) Journal entry worksheet Depreciation recorded on factory equipment, $106,000 Note: Enter debits before credits. Prepare journal entries to record the transactions given above. (If no entry is required for a transaction/event, select "No journal entry equired" in the first account field.) Journal entry worksheet Other manufacturing overhead costs accrued during October, $129,000. Notet Enter debits before credits. Prepare journal entries to record the transactions given above. (If no entry is required for a transaction/event, select "No journal entry equired" in the first account field.) Journal entry worksheet The company applies manufacturing overhead cost to production on the basis of $6 per machine-hour. A total of 76,300 machine-hours were recorded for October. Notet Enter debits before credits. repare journal entries to record the transactions given above. (If no entry is required for a transaction/event, select "No fournal entry equired" in the first account field.) Journal entry worksheet Noter linter debits before credits. trepare journal entries to record the transactions given above. (if no entry is required for a transaction/event, select "No journal entry equired" in the first account field.) Journal entry worksheet repare 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.) Journal entry worksheet C. Accruea arect labor cost of s4YvuU ana indirect labor cost or \$ LIUUU. d. Depreciation recorded on factory equipment, $106.000. e. Other manufacturing overhead costs accrued during October, $129,000 f. The company applies manufacturing overhead cost to production using a predetermined rate of $6 per machine-hour. A total of 76,300 machine-hours were used in October. 9. Jobs costing $514,000 according to their job cost sheets were completed during October and transferred to Finished Goods h. Jobs that had cost $453.000 to complete according to theirjob cost sheets were shipped to customers during the month. These Jobs were sold on account at 30% 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
