The Polaris Company uses a job-order costing system. The following transactions occurred in October: a. Raw materials purchased on account, $209,000. b. Raw materials used in production, $188,000 ($150,400 direct materials and $37,600 indirect materials). c. Accrued direct labor cost of $49,000 and indirect labor cost of $22,000. d. Depreciation recorded on factory equipment, $104,000. e. Other manufacturing overhead costs accrued during October, $129,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $7 per machine-hour. A total of 76,200 machine-hours were used in October. g. Jobs costing $514,000 were completed and transferred to Finished Goods. h. Jobs costing $452,000 were shipped to customers. These jobs were sold on account at 40% 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 $33,000.
The Polaris Company uses a job-order costing system. The following transactions occurred in October: a. Raw materials purchased on account, $209,000. b. Raw materials used in production, $188,000 ($150,400 direct materials and $37,600 indirect materials). c. Accrued direct labor cost of $49,000 and indirect labor cost of $22,000. d. Depreciation recorded on factory equipment, $104,000. e. Other manufacturing overhead costs accrued during October, $129,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $7 per machine-hour. A total of 76,200 machine-hours were used in October. g. Jobs costing $514,000 were completed and transferred to Finished Goods. h. Jobs costing $452,000 were shipped to customers. These jobs were sold on account at 40% 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 $33,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
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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Question
Fully complete both requirement s
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Prepare journal entries to record the transactions given above.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
View transaction list View journal entry worksheet
N
1
No Transaction
1
2
3
4
10
5
6
a.
b.
C.
d.
e.
f.
Raw materials
Accounts payable
Work in process
Manufacturing overhead
Raw materials
General Journal
Work in process
Manufacturing overhead
Salaries and wages payable
Manufacturing overhead
Accumulated depreciation
Manufacturing overhead
Accounts payable
Work in process
Debit
209,000
150,400
37,600
49,000
22,000
129,000
Credit
209,000
188,000
71,000
129,000
![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, $209,000.
b. Raw materials used in production, $188,000 ($150,400 direct materials and $37,600 indirect materials).
c. Accrued direct labor cost of $49,000 and indirect labor cost of $22,000.
d. Depreciation recorded on factory equipment, $104,000.
e. Other manufacturing overhead costs accrued during October, $129,000.
f. The company applies manufacturing overhead cost to production using a predetermined rate of $7 per machine-hour. A total of
76,200 machine-hours were used in October.
g. Jobs costing $514,000 were completed and transferred to Finished Goods.
h. Jobs costing $452,000 were shipped to customers. These jobs were sold on account at 40% 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 $33,000.
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 $33,000.
Manufacturing Overhead
Debit
Beginning balance
Credit
Debit
Beginning balance
Work in Process
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc9737efd-391f-457a-98f6-aa044a0527f1%2Fd513a2f3-df09-4da6-8545-476612ba0142%2Fekvhclf_processed.jpeg&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, $209,000.
b. Raw materials used in production, $188,000 ($150,400 direct materials and $37,600 indirect materials).
c. Accrued direct labor cost of $49,000 and indirect labor cost of $22,000.
d. Depreciation recorded on factory equipment, $104,000.
e. Other manufacturing overhead costs accrued during October, $129,000.
f. The company applies manufacturing overhead cost to production using a predetermined rate of $7 per machine-hour. A total of
76,200 machine-hours were used in October.
g. Jobs costing $514,000 were completed and transferred to Finished Goods.
h. Jobs costing $452,000 were shipped to customers. These jobs were sold on account at 40% 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 $33,000.
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 $33,000.
Manufacturing Overhead
Debit
Beginning balance
Credit
Debit
Beginning balance
Work in Process
Credit
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