The Polaris Company uses a job-order costing system. The following transactions occurred in October: a. Row materials purchased on account, $210,000. b. Raw materials used in production, $190,000 (S178,000 direct materials and $12,000 indirect materials). C. Accrued direct labor cost of $90,000 and indirect labor cost of $110,000. d. Depreciation recorded on factory equipment, $40,000. e. Other manufacturing overhead costs accrued during October, $70,000. 1. The company applies manufacturing overhesd cost to production using a predetermined rate of $8 per machine-hour. A total of 30,000 machine-hours were used in October. g. Jobs costing $520,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $480,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 25% above cost. Required: 1. Prepare journal entries to record the transactions given above. 2. Prepare T-acounts for Manufocturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in esch account, ossuming that Work in Process has a beginning balance of $42,000.
The Polaris Company uses a job-order costing system. The following transactions occurred in October: a. Row materials purchased on account, $210,000. b. Raw materials used in production, $190,000 (S178,000 direct materials and $12,000 indirect materials). C. Accrued direct labor cost of $90,000 and indirect labor cost of $110,000. d. Depreciation recorded on factory equipment, $40,000. e. Other manufacturing overhead costs accrued during October, $70,000. 1. The company applies manufacturing overhesd cost to production using a predetermined rate of $8 per machine-hour. A total of 30,000 machine-hours were used in October. g. Jobs costing $520,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $480,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 25% above cost. Required: 1. Prepare journal entries to record the transactions given above. 2. Prepare T-acounts for Manufocturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in esch account, ossuming that Work in Process has a beginning balance of $42,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The Polaris Company uses a job-order costing system. The following transsctions occurred in October:
a. Row materials purchased on account, $210,000.
b. Row materials used in production, $190,000 ($178,000 direct materials and $12,000 indirect materials).
c. Accrued direct labor cost of $90,000 and indirect labor cost of $110,000.
d. Depreciation recorded on factory equipment, $40,000.
e. Other manufacturing overhead costs accrued during October, $70,000.
f. The company applies manufacturing overhesd cost to production using a predetermined rate of $8 per machine-hour. A total of
30,000 machine-hours were used in October.
g. Jobs costing $520,000 sccording to their job cost sheets were completed during October and transferred to Finished Goods.
h. Jobs that had cost $480,000 to complete sccording to their job cost sheets were shipped to customers during the month. These
jobs were sold on sccount at 25% above cost.
Required:
1. Prepare journal entries to record the transactions given above.
2. Prepare T-accounts for Manufecturing Overhesd and Work in Process. Post the relevant transactions from above to each sccount.
Compute the ending balance in esch account, assuming that Work in Process has a beginning balance of $42,000.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare journal entries to record the transactions given above. (Ir no entry is required for a transaction/event, select "No journal entry
required" in the first account field.)
Vlew transaction llat
Journal entry worksheet
3 4
5 6
1
2
7
Raw materials purchased on account, $210,000.
Note: Enter debits before credits.
Traneaction
General Journal
Debit
Credit
a.
Record entry
Clear entry
Vew general Joumal
Required 1
Required 2 >
co
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