Concept explainers
EXERCISE 3-9
The Polaris Company uses a job-order costing system. The following data relate to October, the first month of the company’s fiscal year.
a. Raw materials purchased on account, $210,000.
b. Raw materials issued to production, $190,000 ($178,000 direct materials and $12,000 indirect materials).
c. Direct labor cost incurred, $90,000; indirect labor cost incurred, $110,000.
d.
e. Other manufacturing
f. The company applies
g. Production orders costing $520,000 according to their
h. Production orders that had cost $480,000 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold on account at 25% above cost.
Required:
1. Prepare journal entries to record the information given above.
2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant information above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $42,000.
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Chapter 3 Solutions
MANAGERIAL ACCT W/CONNECT >IC<
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