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, $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, $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 $10 per machine-hour. A total of76,300 machine-hours were used in October.9 Jobs costing $510,000 according to their job cost sheets were completed during October and transferred to Finished Goods.h. Jobs that had cost $450,000 to complete according to their job cost sheets were shipped to customers during the month. TheseJobs were sold on account at 26% above costRequired: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.nt.Complete this question by entering your answers in the tabs below.wencesRequired 1Required 2Prepare journal entries to record the transactions given above. (if no entry is required for a transaction/event, select "No journal entryrequired" in the first account field.)View transaction lietJournal entry worksheet View transaction listJournal entry worksheet1378Record the cost of goods sold.Note: Enter debits before credits.TransactionGeneral JournalDobitCredith(1).Record entryClear entryView general journalJournal entry worksheet2346.789.Record the sales on account.Note: Enter debits before credits.TransactionGeneral JournalDebitCredith(2).Record entryClear entryView general journal

Cost of goods sold is given at $450,000 and sales are 26% above cost. Sales = $450,000 + 26% =…

Answered: The Polaris Company uses a job-order…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Entries for Costs in a Job Order Cost System Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March: a. Materials purchased on account, $770,000. b. Materials requisitioned, $680,000, of which $75,800 was for general factory use. c. Factory labor used, $756,000, of which $182,000 was indirect. d. Other costs incurred on account for factory overhead, $245,000; selling expenses, $171,500; and administrative expenses, $110,600. e. Prepaid expenses expired for factory overhead were $24,500; for selling expenses, $28,420; and for administrative expenses, $16,660. f. Depreciation of factory equipment was $49,500; of office equipment, $61,800; and of office building, $14,900. g. Factory overhead costs applied to jobs, $568,500. h. Jobs completed, $1,500,000. i. Cost of goods sold, $1,375,000. Required: Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it…
A Corporation uses a job costing system and had the following data available for the current period. Purchased materials on account $70,000 Materials requisitioned ( includes $6,500 of indirect material) $54,500 Manufacturing wages incurred $75,000 Assigned manufacturing wages, 85% direct labour, 15% indirect labour Depreciation of factory equipment $13,500 Other manufacturing overhead incurred $45,900 Manufacturing overhead applied (as a % of direct labour cost) 130% Cost of goods completed $165,000 Cost of goods sold (on account) at a mark-up of 45% $130,000 State the…
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, $131.000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 76.200 machine-hours were used in October. g. Jobs costing $510,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $447,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 28% above cost. Required: 1. Prepare journal entries to record the transactions given…
1. ABC Co. uses a job-order cost system and applies overhead cost to jobs on the basis of direct materials used in production. The company's estimates were: manufacturing overhead cost, S400,000; and direct materials to be used in production, s250,000. The company's inventory accounte at the beginning of the year were: Beginning S 10,000 Ending $ 40,000 Raw Materials Work in Process 75,000 35,000 200,000 Finished Goods 130,000 The following actual costs were incurred during the year: Purchase of raw material (all direct) Direct labor cost S 255,000 45,000 Manufacturing overhead costs: Indirect labor 85.000 90,000 130,000 45,000 7,000 24,000 Utilities Depreciation of equipment Maintenance Insurance Rent, building Required: b) Compute the amount of under- or overapplied overhead for the year. 2. Prepare a schedule of cost of goods manufactured for the year. 3. Compute the cost of goods sold for the year. 4. Job 207 was started and completed during the year. What price would have been…
The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials purchased on account, $210,000. Raw materials used in production, $188,000 ($150,400 direct materials and $37,600 indirect materials). Accrued direct labor cost of $50,000 and indirect labor cost of $20,000. Depreciation recorded on factory equipment, $105,000. Other manufacturing overhead costs accrued during October, $129,000. The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 76,200 machine-hours were used in October. Jobs costing $511,000 according to their job cost sheets were completed during October and transferred to Finished Goods. Jobs that had cost $450,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 40% above cost. Required: 1. Prepare journal entries to record the transactions given above. 2. Prepare…
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 $49,000 and indirect labor cost of $22,000. d. Depreciation recorded on factory equipment, $106,000. e. Other manufacturing overhead costs accrued during October, $130,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $9 per machine-hour. A total of 76,000 machine-hours were used in October. g. Jobs costing $513,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $447,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 36% above cost. Required: 1. Prepare journal entries to record the transactions given…
A manufacturer uses job-order costing. On January 1, the company's inventory balances were as follow Raw materials Work in process Finished goods $50,500 $25,000 $38,100 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predetermined overhead rate was based on a cost formula that estimated $470,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year: a. Raw materials were purchased on account, $592,000. b. Raw materials used in production, $557,000. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $442,000; indirect labor, $150,000; selling and administrative salaries, $295,000. d. Incurred various selling and administrative expenses (e.g, advertising, sales travel costs, and finished goods warehousing), $381,000 e. Incurred various additional…
Entries for Costs in a Job Order Cost System Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March: Materials purchased on account, $604,590. Materials requisitioned, $507,860, of which $66,020 was for general factory use. Factory labor used, $622,730, of which $118,320 was indirect. Other costs incurred on account for factory overhead, $145,100; selling expenses, $223,700; and administrative expenses, $133,010. Prepaid expenses expired for factory overhead were $27,810; for selling expenses, $23,580; and for administrative expenses, $16,930. Depreciation of factory equipment was $27,810; of office equipment, $41,110; and of office building, $81,020. Factory overhead costs applied to jobs, $344,620. Jobs completed, $798,060. Cost of goods sold, $773,880. Required: Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it blank. a. Materials purchased…
nit.3
Kaymer Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations: a. Materials purchased on account, $33,100. b. Materials requisitioned and factory labor used: Job Materials Factory Labor 301 $2,740 $5,460 302 3,980 2,930 303 2,570 3,070 304 8,850 8,520 305 6,210 1,840 306 4,290 6,110 For general factory use 1,200 4,520 c. Factory overhead costs incurred on account, $6,470. d. Depreciation of factory machinery and equipment, $1,790. e. The factory overhead rate is $65 per machine hour. Machine hours used: Job Machine Hours 301 52 302 28 303 44 304 65 305 36 306 79 Total 304 f. Jobs completed: 301, 302, 303, and 305. g. Jobs were shipped and customers were billed as follows: Job 301, $23,450; Job 302, $19,210; Job 303, $17,360. Required: 1. Journalize the entries to…
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Company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of the cost of materials used in production. At the beginning of the most recent year, the following estimates were made as a basis for computing the predetermined overhead rate for the year: manufacturing overhead cost : 200,000 direct material cost: 160,000 Raw materials purchased: $86,000.Raw materials requisitioned for use in production (all direct materials): $98,000.What is the journal entry for"Manufacturing overhead cost was applied to jobs as per company policy."

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