Question

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, $191,000 ($152,800 direct materials and $38,200 indirect materials). C. Accrued direct labor cost of $48,000 and indirect labor cost of $20,000. d. Depreciation recorded on factory equipment, $105,000. e. Other manufacturing overhead costs accrued during October, $129,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $9 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 $452,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 34% 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 Required 1 1 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. Show less Manufacturing Overhead Work in Process Beg. Bal. End. Bal. End. Bal. < Required 1 Required 2

Answer 1

ocul tatt 211,000 211,000 152,800 38,200 190.000 H8,000 20,000 68,000 105,000 105,000 Journal Estates 5.100 General Jocmal a raw materials AIC 07 TO Arounts payable Alc b wook Po process AIC OD Manfachofna overhead AK DO TO Raco malerials ALC Cook in poocess AIC OO Manfactooing aerhead AIC DO TO Scalcofes and crages payable Al Manfactooing Overhead AIC DO To accomolated depreciation Ak e Maofacturing Overhead AIC DO TO Accocnis payable Alc Wook in process AIC OX ... To manfachoing Overhead Alc: 76,300 MH x $ 9 peo mH 9. Forshed goods AC OO TO cook to poocess Alle ha cost of goods sold AK OD TO Anished goods Alc Accounts recelobe ALCOO TO Sales Alc C $452,000 x 1-34) 129.000 129.000 686,700 686,700 512,000 512,000 452,000 452.000 605,680 GOS,680 (b) Manfactroing overhead $ 38,200 (6) $686,700 $ 20,000 $ 105,000 $ 129,000 Ball (b) Cirok pob cess $ 36000|I) $ 512.000 $ 152,800 (C) (F) $ 48,000 $686,700 Bal. $ 411,500 $ 390 150 (Oveoappired Overhead)