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 ($152,000 direct materials and $38,000 indirect materials). c. Accrued direct labor cost of $49,000 and indirect labor cost of $21,000. d. Depreciation recorded on factory equipment, $104,000. e. Other manufacturing overhead costs accrued during October , $130,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $6 per machine-hour. A total of 76,200 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 $452,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 38% 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 $37,000. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record the transactions given above. (If no entry is required for a transaction/event, select "No journal entry required in the first account held.) View transaction list View journal entry worksheet No Transaction General Journal Credit Debit 210,000 1 a Raw materials

Answer 1

1.

Account Titles	Debit	Credit
Raw Material Inventory	$        210,000
Accounts Payable		$     210,000
Work in Process Inventory	$        152,000
Manufacturing Overhead	$          38,000
Raw Material Inventory		$     190,000
Work in Process Inventory	$          49,000
Manufacturing Overhead	$          21,000
Wages Payable		$       70,000
Manufacturing Overhead	$        104,000
Accumlated Depreciation		$     104,000
Manufacturing Overhead	$        130,000
Accounts Payable		$     130,000
Work in Process Inventory	$        457,200
Manufacturing Overhead		$     457,200
Finished Goods Inventory	$        510,000
Work in Process Inventory		$     510,000
Accounts Receivable	$        623,760
Sales Revenue		$     623,760
Cost of Goods Sold	$        452,000
Finished Goods Inventory		$     452,000

2.

Work in Process Inventory
Beg Bal	$       37,000	$     510,000	Finished Goods
Direct Material	$     152,000
Direct Labor	$       49,000
Mfg Overhead	$     457,200
End bal	$     185,200

Manufacturing Overhead
Indirect Material	$       38,000	$     457,200	Work in Process
Indirect Labor	$       21,000
Depreciation	$     104,000
Other	$     130,000
End bal		$     164,200

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