Question

1 and 2 reguired answers

Check my work 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, $188,000 ($150,400 direct materials and $37.600 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, $130,000 The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 76,100 machine-hours were used in October 9. Jobs costing 5514,000 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 26% 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 o ral Prepare journal entries to record the transactions given above. (If no entry is required for a transaction event elect required in the first account field.).

Answer 1

Journal Entries:

Credit Requirement 1 General No Transaction Journal Debit 1 a. Raw Materials $ 210,000 Accounts Payable (To record raw material purchased on account) $ 210,000 $ 150,400 2 b. Work in process Manufacturing overhead Raw Materials (To record raw material being used) $ 37,600 $ 188,000 $ 49,000 $ 20,000 3 c. Work in process Manufacturing overhead Salaries and wages payable (To record accrued salaries and wages) $ 69,000 106,000 Manufacturing 4 d. overhead $ Accumulated Depreciation (To record depreciation on factory equipment) $ 106,000

Journal Entries:

Debit Credit General Transaction Journal Manufacturing 5 e. overhead Accounts payable (To record manufacturing overhead accrued) $ 130,000 $ 130,000 Work in process 6 f. ($7 X 76100) $ 532,700 Manufacturing overhead $ 532,700 (To record manufacturing overhead cost to production on a predetermined rate) $ 514,000 7 g. Finished goods Work in process (To record finished goods) $ 514,000 8 h (1) Cost of goods sold $ 450,000 Finished goods (To record sale of finished goods by recording cost of sales) $ 450,000 Accounts Receivable (450,000+ h (2) (450,000 X 30%) Sales (To record sales on accounts) $ 567,000 $ 567,000

T-accounts:

$ 532,700 Requirement 2 Manufacturing Overhead $ 37,600f $ 20,000 $ 106,000 $ 130,000 Ending balance 239,100 Work in Process Beginning Balance $ $ 514,000 $ 36,000 g 150,400 49,000 532,700 Ending balance $ 254,100