Solution 1:
Journal Enteries - Polaris Company | |||
S. No | General Journal | Debit | Credit |
a | Raw Material Inventory Dr | $210,000.00 | |
To Accounts Payable | $210,000.00 | ||
(Raw material purchased on account) | |||
b | Work In Process Dr | $151,200.00 | |
Manufacturing Overhead Dr | $37,800.00 | ||
To Raw Material Inventory | $189,000.00 | ||
(Being Raw material used in production) | |||
c | Work In Process Dr | $49,000.00 | |
Manufacturing Overhead Dr | $20,000.00 | ||
To Wages Payable | $69,000.00 | ||
(Being labor cost accrued) | |||
d | Manufacturing overhead Dr | $106,000.00 | |
To Accumulated depreciation - Factory Equipment | $106,000.00 | ||
(Being depreciation charged on factory equipment) | |||
e | Manufacturing overhead Dr | $131,000.00 | |
To Accounts Payable | $131,000.00 | ||
(Being other manufacturing overhead cost incurred) | |||
f | Work In Process Dr (76100 * $9) | $684,900.00 | |
To Manufacturing overhead | $684,900.00 | ||
(Being manufacturing overhead applied to prodcution) | |||
g | Finished Goods Inventory Dr | $512,000.00 | |
To Work In Process | $512,000.00 | ||
(Being cost of completed goods transferred to finished goods) | |||
h-1 | Cost of goods sold Dr | $450,000.00 | |
To Finished Goods Inventory | $450,000.00 | ||
(Being cost of unit sold transferred to COGS) | |||
h-2 | Accounts Receivables Dr ($450,000*126%) | $567,000.00 | |
To Sales Revenue | $567,000.00 | ||
(To record sales on account) |
Solution 2:
Manufacturing Overhead Account | |||
Particulars | Debit | Particulars | Credit |
To Raw material inventory | $37,800.00 | By Work In Process | $684,900.00 |
To Wages Payable | $20,000.00 | ||
To Accumulated depreciation - Factory Equipment | $106,000.00 | ||
To Accounts Payable | $131,000.00 | ||
To Ending balance | $390,100.00 | ||
Total | $684,900.00 | Total | $684,900.00 |
Work in Process Account | |||
Particulars | Debit | Particulars | Credit |
To Beginning Balance | $35,000.00 | By Finished goods inventory | $512,000.00 |
To Raw Material Inventory | $151,200.00 | By Ending balance | $408,100.00 |
To Wages Payable | $49,000.00 | ||
To Manufacturing overhead applied | $684,900.00 | ||
Total | $920,100.00 | Total | $920,100.00 |
The Polaris Company uses a job-order costing system. The following transactions occurred in October 25 points...
2 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 $20,000. d. Depreciation recorded on factory equipment, $106,000. e. Other manufacturing overhead costs accrued during October, $129,000. f. The company applies manufacturing overheed cost to production using a predetermined rate of $8...
he Polaris Company uses a job-order costing system. The following transactions occurred in October: 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, $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, $105,000. e. Other manufacturing overhead costs accrued during October, $131,000. f. The...
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 $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, $130,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $10 per...
The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials purchased on account, $210,000. Raw materials used in production, $189,000 ($151,200 direct materials and $37,800 indirect materials). Accrued direct labor cost of $50,000 and indirect labor cost of $21,000. Depreciation recorded on factory equipment, $106,000. Other manufacturing overhead costs accrued during October, $130,000. The company applies manufacturing overhead cost to production using a predetermined rate of $7 per machine-hour. A total of 76,300 machine-hours...
The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials purchased on account, $210,000. Raw materials used in production, $189,000 ($151,200 direct materials and $37,800 indirect materials). Accrued direct labor cost of $49,000 and indirect labor cost of $21,000. Depreciation recorded on factory equipment, $104,000. Other manufacturing overhead costs accrued during October, $130,000. The company applies manufacturing overhead cost to production using a predetermined rate of $6 per machine-hour. A total of 76,100 machine-hours...
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, $191,000 ($152,800 direct materials and $38,200 indirect materials) Accrued direct labor cost of $48,000 and indirect labor cost of $21,000. d. Depreciation recorded on factory equipment, $105,000. e. Other manufacturing overhead costs accrued during October, $131,000. The company applies manufacturing overhead cost to production using a predetermined rate of $7 per machine-hour. A...
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, $189,000 ($151,200 direct materials and $37,800 indirect materials). C. Accrued direct labor cost of $48,000 and indirect labor cost of $20,000. d. Depreciation recorded on factory equipment, $106,000. e. Other manufacturing overhead costs accrued during October, $130,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $10 per...
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, $192,000 ($153,600 direct materials and $38,400 indirect materials). c. Accrued direct labor cost of $49,000 and indirect labor cost of $21,000. d. Depreciation recorded on factory equipment, $105,000. e. Other manufacturing overhead costs accrued during October, $130,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $9 per...
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, $190,000 ($152,000 direct materials and $38,000 indirect materials). c. Accrued direct labor cost of $49,000 and indirect labor cost of $21,000. d. Depreciation recorded on factory equipment, $104,000. e. Other manufacturing overhead costs accrued during October , $130,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $6...
The Polaris Company uses a job-order costing system. The following transactions occurred in October: ES a. Raw materials purchased on account, $210,000. b. Raw materials used in production, $190,000 ($152,000 direct materials and $38,000 indirect materials). c. Accrued direct labor cost of $50,000 and indirect labor cost of $21,000. d. Depreciation recorded on factory equipment, $105,000. 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...