Question

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, $191,000 ($152,800 direct materials and $38,200 indirect materials). C. Accrued direct labor cost of $50,000 and indirect labor cost of $21,000. d. Depreciation recorded on factory equipment, $104,000. 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 $512,000 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 38% 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 $34,000. Complete this question by entering your answers in the tabs below. Required Required 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.) View transaction list Journal entry worksheet 2 3 4 5 6 7 8 9 Raw materials purchased on account, $209,000. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry View general journal Clear entry

Answer 1

را Transaction Debit credit a. $ 209,000 General Journal Raw materials Accounts Payable To record raw materials purchased) $ 209,000 $152,800 $ 38,200 Work in process Manufacturing overhead Raw materials the second raw materials used) $191,000 $50,000 $ 21,000 $71,000 Work in process Manufacturing overhead salaries and wages Payable (To record direct and indirect labor cost accrued) $104,ooo de $104,ooo Manufacturing overhead Accumulated Depreciation (To record depreciation) $ 129,000 $129,000 Manufacturing ouerhead Accounts Payable To recond other manufacturing overhead cost)

to work in process Manufacturing Overhead (To record manufacturing overhead) $761,000 $761,000 $512,000 finished Goods Work in Process (to record jeb sheet transferred) $512,000 (2) Cost of goods sold $448,000 finished Goods $448,000 (To record job shipped to customers) n(2) Accounts Receivable $618,240 Sales $618,240 (To record sales) Calculation : ifs Manufacturing overhead = 76,100 hours a $10 per hour a $761,000 4 (2) Accounts Receivable = $440,000+ ($448,000 X 30%) - $448,000 + $ 170,240 - $618,240

Manufacturing Overhead $38,200 $761,000 $ 21,000 $ 104,000 $ 129,000 Ende Bale $468,800 Work in Process Beg. Balo $ 34,000 $152,800 $512,000 $ 50,000 $761,000 g. End: Balo $405,800