Question

JUULU FUNewOrR 1 Help Save & Exi Check Exercise 3-5 Journal Entries and T-accounts (LO3-1, LO3-2) The Polaris Company uses a job-order costing system. The following transactions occurred in October a. Raw materials purchased on account, $211,000. 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, $131,000. 1. 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 $512,000 according to their job cost sheets were completed during October and transferred to Finished Goods h. Jobs that had cost $450,000 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. 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.) < Prey 2 of 4 Next >

Answer 1

journal entries

S.no	particular	Debit ($)	Credit ($)
1	Raw material inventory	211000
	Accounts payable		211000
2	work in process	152000
	Manufacturing OVERHEAD	38000
	Raw material inventory		190000
3	work in process	50000
	Manufacturing OVERHEAD	21000
	Wages payable		71000
4	Manufacturing OVERHEAD	105000
	Accumulated depreciation		105000
5	Manufacturing OVERHEAD	131000
	Accounts payable		131000
6	work in process(76300×$6)	457800
	Manufacturing OVERHEAD		457800
7	finished goods	512000
	Work in process		512000
8	cost of goods sold	450000
	Finished goods		450000
9	account receivable	585000
	Sales(450000+30%)		585000

2) . T accounts

Manufacturing OVERHEAD

RAW MATERIAL inventory	38000	work in process	457800
Wages payable	21000
Accumulated depreciation	105000
Accounts payable	131000
Balance	162800

Work in process

Beginning balance	35000	finished goods	512000
RAW MATERIAL inventory	152000
Wages payable	51000
Manufacturing OVERHEAD	457800	balance	183800

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