The Polaris Company uses a job-order costing system. The following transactions

Question

The Polaris Company uses a job-order costing system. The following transactions occurred in October a. Raw materials purchased on account, $211,000. b. Raw materials used in production, $192.000 ($153,600 direct materials and $38,400 indirect materials). c. Accrued direct labor cost of $49,000 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 $8 per machine-hour. A total of 76,200 machine-hours were used in October g. Jobs costing $512.000 according to their job cost sheets were completed during October and transferred h. Jobs that had cost $453,000 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 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 $34,000. Complete this question by entering your answers in the tabs below. in Prepare journal entries to record the transactions given above. (If no entry is required for a tr the first account field.) ion/event, select "No journal entry r View transaction list

Explanation / Answer

No Transactions General Journal Debit Credit 1 a.   Raw materials inventory $        211,000         Accounts payable $        211,000 2 b.   Work in process $        153,600   Manufacturing overhead $          38,400         Raw materials inventory $        192,000 3 c.   Work in process $          49,000   Manufacturing overhead $          21,000         Salaries and wages payable $          70,000 4 d.   Manufacturing overhead $        105,000         Accumulated depreciation $        105,000 5 e.   Manufacturing overhead $        129,000         Accounts payable $        129,000 6 f.   Work in process $        609,600 ($8 x 76,200 MHs)         Manufacturing overhead $        609,600 7 g.   Finished goods $        512,000         Work in process $        512,000 8 h(1)   Cost of goods sold $        453,000         Finished goods $        453,000 9 h(2)   Accounts receivable $        616,080 (453000 x 136%)         Sales $        616,080 Manufacturing Overhead b                                                       38,400            609,600 f c                                                       21,000 d                                                     105,000 e                                                     129,000 End bal 316200 Work in process Beg Bal                                                       34,000 b                                                     153,600            512,000 g c                                                       49,000 f                                                     609,600 End Bal                                                     334,200

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