Question

The Polaris Company uses a job-order costing system. The following transactions occurred in October a. Raw materlals purchased on account, $210,000. b. Raw materlals used in production, $188,000 ($150,400 direct materials and $37,600 indirect materlals). 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, $130,000. t The company applies manufacturing overhead cost too production using a predetermined rate of $5 per machine- hour. A total of 76,200 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 thelr Job cost sheets were shipped to customers during the month. These jobs were sold on account at 24% above cost Required: 1. Prepare journal entries to record the transactions glven 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 Required 2 Prepare journal entries to record the transactions given above. (If no entry is required for a transaction/event, select "No joumal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 Raw materials purchased on account, $210,000. Note: Enter debits before credits. General Journal Transaction Debit Credit Record entry View general journal Clear entry Required 2 Required 1

Answer 1

Polaris Company Manufacturing Overhead 37600 f Journal Enteries Debit in $ Credit in $ Particulars 381000 Trans. Raw Materials a/c 210000 Dr. 21000 a. C To Accounts Payable d 210000 105000 |(Raw materials purchased on account) 130000 e Bal 87400 Work in Process a/c b. 381000 Dr. 150400 381000 Manufacturing Overhead a/c Dr. 37600 To Raw Materials Work in Process 188000 35000 g Beg Bal (Raw materials used in prodn.) 512000 150400 Work in Process a/c Dr. 50000 50000 C. C Manufacturing Overhead a/c To Salaries and wages payable f 381000 Dr. 21000 Bal 71000 104400 (To record labor cost) 616400 616400 d. Manufacturing Overhead a/c Dr. 105000 To Accum. Depreciation 105000 (To record depreciation) Manufacturing Overhead a/c To Accounts Payable Dr. 130000 e. 130000 (Manufacturing cost accrued) Work in Process a/c f. 381000 Dr. To Manufacturing Overhead 381000 (To Manufacturing overhead)76200 x 5 381000 Finished goods a/c 512000 Dr. g. To Work in process 512000 (Work in process trfd. To Finisged goods) Cost of goods sold a/c To Finished goods h1. Dr. 450000 450000 (To record Cost of goods sold) h2. Accounts Receivable a/c Dr. 558000 To Sales 558000 (Sales on account) 450000 x 1.24 558000