Question

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, $192,000 ($153,600 direct materials and $38,400 indirect materials). C. Accrued direct labor cost of $50,000 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 $10 per machine-hour. A total of 76,100 machine-hours were used in October. g. Jobs costing $513,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $448,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 32% 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.
  Please help, thank you! :)

Answer 1

I am giving you answer for the last two journal entries and the T-accounts. If you need anything else please let me know

8	h(1).	Cost of goods sold	$ 448,000
		Finished goods		$ 448,000
8	h(1).	Accounts receivable	$ 591,360
		Sales		$ 591,360

Manufacturing Overhead		Work in Process
b	38,400	761,000	f		Beg. Bal.	36,000
c	21,000				b	153,600	513,000	g
d	106,000				c	50,000
e	129,000				f	761,000
End Bal	466,600				End Bal		487,600