Exercise 3-5 (Algo) 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, $210,000. b. Raw materials used in production, $189.000 ($151,200 direct materials and $37,800 Indirect materials). c. Accrued direct labor cost of $50,000 and Indirect labor cost of $21,000. d. Depreciation recorded on factory equipment, $106,000. e. Other manufacturing overhead costs accrued during October, $129,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 76,000 machine-hours were used in October. g. Jobs costing $512,000 were completed and transferred to Finished Goods. h. Jobs costing $448,000 were shipped to customers. These jobs were sold on account at 28% 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 Work In Process has a beginning balance of $34,000. Complete this question by entering your answers in the tabs below. Required 1 Required 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 Work in Process has a beginning balance of $34,000. Manufacturing Overhead Debit Beginning balance Ending balance Credit Beginning balance Ending balance Debit < Required 1 Work in Process Required 2 Credit
Exercise 3-5 (Algo) 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, $210,000. b. Raw materials used in production, $189.000 ($151,200 direct materials and $37,800 Indirect materials). c. Accrued direct labor cost of $50,000 and Indirect labor cost of $21,000. d. Depreciation recorded on factory equipment, $106,000. e. Other manufacturing overhead costs accrued during October, $129,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 76,000 machine-hours were used in October. g. Jobs costing $512,000 were completed and transferred to Finished Goods. h. Jobs costing $448,000 were shipped to customers. These jobs were sold on account at 28% 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 Work In Process has a beginning balance of $34,000. Complete this question by entering your answers in the tabs below. Required 1 Required 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 Work in Process has a beginning balance of $34,000. Manufacturing Overhead Debit Beginning balance Ending balance Credit Beginning balance Ending balance Debit < Required 1 Work in Process Required 2 Credit
Chapter1: Financial Statements And Business Decisions
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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![Exercise 3-5 (Algo) 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, $210,000.
b. Raw materials used in production, $189.000 ($151,200 direct materials and $37,800 Indirect materials).
C. Accrued direct labor cost of $50,000 and Indirect labor cost of $21,000.
d. Depreciation recorded on factory equipment, $106,000.
e. Other manufacturing overhead costs accrued during October, $129,000.
f. The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of
76,000 machine-hours were used in October.
g. Jobs costing $512,000 were completed and transferred to Finished Goods.
h. Jobs costing $448,000 were shipped to customers. These jobs were sold on account at 28% 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 Work In Process has a beginning balance of $34,000.
Complete this question by entering your answers in the tabs below.
Required 1 Required 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 Work in Process has a beginning balance of $34,000.
Manufacturing Overhead
Debit
Beginning balance
Ending balance
Credit
Beginning balance
Ending balance
Debit
< Required 1
Work in Process
Required 2
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F62ba72b9-c549-4010-a95c-99a07848e9d0%2Fd3961036-b984-48fd-8aa2-039e599f0a73%2Fejqzqtb_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 3-5 (Algo) 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, $210,000.
b. Raw materials used in production, $189.000 ($151,200 direct materials and $37,800 Indirect materials).
C. Accrued direct labor cost of $50,000 and Indirect labor cost of $21,000.
d. Depreciation recorded on factory equipment, $106,000.
e. Other manufacturing overhead costs accrued during October, $129,000.
f. The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of
76,000 machine-hours were used in October.
g. Jobs costing $512,000 were completed and transferred to Finished Goods.
h. Jobs costing $448,000 were shipped to customers. These jobs were sold on account at 28% 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 Work In Process has a beginning balance of $34,000.
Complete this question by entering your answers in the tabs below.
Required 1 Required 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 Work in Process has a beginning balance of $34,000.
Manufacturing Overhead
Debit
Beginning balance
Ending balance
Credit
Beginning balance
Ending balance
Debit
< Required 1
Work in Process
Required 2
Credit
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