Question

Journal entry one is given.

Journal entry 2 record the raw materials used in production, 189,000 (151,200 direct materials and 37,800 indirect materials).

Journal entry 3 record the entry for accrued direct Labor costs incurred, 50,000; indirect Labor cost incurred, 22,000.

Journal entry 4 depreciation recorded on factory equipment, 105,000.

Journal entry 5 other manufacturing overhead costs accrued during October, 130,000.

Journal entry 6 The company applies manufacturing overhead cost to production on the basis of 6$ per machine hour. A total of 76,200 machine hours were recorded for October.

Journal entry 7 Jobs costing $511,000 according to their job cost sheets were completed during October and transferred to finished goods.

Journal entry 8 Record the cost of goods sold.

Journal entry 9 Record the sales on account.

The Polaris Company uses a job-order costing system. The following transactions occurred in October 2.5 points eBook 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 $50,000 and indirect labor cost of $22,000. d. Depreciation recorded on factory equipment, $105,000 e. 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 76,200 machine-hours were used in October 9. Jobs costing $511,000 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. Print References 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 1 Required 2 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.)

Answer 1

No. Transaction Credit Debit $ 209,000 I General Journal Raw materials Accounts payable (Torecord raw materials purchased $209,000 $ 151,200 $ 37,800 work in process Manufacturing overhead Raw materials To record manufacturing overhead $ 189,000 work in process $ 50,000 Manufacturing overhead 18 22,ooo Salaries & wages payable (Torecord salaries & wages payable) & 72,000 #105,000 Manufacturing overhead Accumulated depreciation (To record accumulated depresia $ 105,000 $ 130,000 5. e $ 130,000 Manufactwung overhead Accounts payable To record manufacturing overhead) & 457,200 Work in process Manufacturing overhead (to record manufacturing overhead) $ 457,200 $511,000 $ 511,000 finished goods work in process (To record job cast sheets transfered to finished Goody

di h(1) $448,000 Cost of goods sold - finished goods (To record cost of goods sold) $ 448,000 9 h(2) $ 618,240 Accounts receivable Sales (To record sales) $ 618,240 Calculation: 6. f. work in Process = = 76,200 4 &6 $ 457,200 9. h (2) sales - $448,000 X 38% $ 170, 240 $ 448,000 + $170,240 $618,240 Manufacturing overhead $ 37,800 $457,200 $ $ 22,000 $105,ooo $130,000 work in Process Beg bal, $ 34,000 b. $ 151,200 $511,000 g Is So,odo $ 457,200 SB $162,400 Endibal Endibal $181,400