Question

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). c. Accrued direct labor cost of $49,000 and indirect labor cost of $20,000. 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 $7 per machine-hour. A total of 76,100 machine-hours were used in October. 9. Jobs costing $513,000 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 22% 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 $37,000. 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.) View transaction list Journal entry worksheet 2 3 4 5 6 7 8 9 Raw materials purchased on account, $210,000. Note: Enter debits before credits Transaction General Journal Debit Credit < Prev 1 of 4 Next >

Answer 1

Required 1 Jovenal entries Tronsaction | General Journal - Debit Credit ä. Raw materials inveniony $ 210,000 I Accounts Payable 18210.000 b. Work in Process $ 159,800 Manufaecluning Overhead ' 38, 200 Rawmaleval inventory 9 191000 e. Work in process, 18 49000 Manufacturing Overhead $ 20000 Salaries and wages payable. $ 69.000 di Mancifacetering Overhead, 9 104,000 Accomelo fed elepreciation Is 104,000 e Manufacturing Overhead 1:$130,000 Accounts payable - 9130,000 1. klockin process Manufacturing Overhead $532700 L 2.700* 9 5/3,000 9. Finished goods Work in process h(1) Cost of goods sold finished goods h(2) Accounts Receivable - sales 9513,000 . $448,000 8.448,000 is 546,560*|. 19 546560

Explanation : of Inout in Process - (76100 MH X p 7 per MH) f 532 700 he). Accounts Receivable is / $ 448.000 X 4.22) - $ 546,560 Required i I- Accounts Manilacyring Overhead $ 38,200 $532.700 F 80.000 $_104,000 $ 130.000 -- - [ End. Bal. $ 240.500 Bea. Ba .. Work in Process $ 37000 $152800_14_513.000_ $_49000 $ 532,700 kend. Bail |fase 500_