Question

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, $190,000 (5178,000 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 overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 9. 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-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 $42.000 ces Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record the transactions glven above. (If no entry is required for a transaction/event, select "No journal entry required in the first account field) View transactional

Answer 1

No	General journal	Debit	Credit
a.	Raw materials	210,000
	accounts payable		210,000
b.	Work in process inventory	178,000
	manufacturing overhead	12,000
	Raw materials		190,000
c.	Work in process inventory	90,000
	manufacturing overhead	110,000
	Wages payable		200,000
d.	Manufacturing overhead	40,000
	Accumulated depreciation		40,000
e.	Manufacturing overhead	70,000
	Accounts payable		70,000
f.	Work in process inventory	240,000
	manufacturing overhead		240,000
	(76100*7)
g.	Finished goods	520,000
	Work in process inventory		520,000
h.	Cost of goods sold	480,000
	finished goods		480,000
	Accounts receivable	600,000
	sales (480,000*125%)		600,000

Manufacturing	overhead
b.	12,000	f.	240,000
c.	110,000
d.	40,000
e.	70,000
		End bal	8,000
Work In process	inventory
Beg bal	42,000	g.	520,000
b.	178,000
c.	90,000
f.	240,000
end bal	30,000