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, $188,000 ($150,400 direct materials and $37,600 indirect materials).

c. Accrued direct labor cost of $48,000 and indirect labor cost of $20,000.

d. Depreciation recorded on factory equipment, $104,000.

e. Other manufacturing overhead costs accrued during October, $129,000

f. The company applies a manufacturing overhead cost to production using a predetermined rate of $7 per machine-hour. A total of 76,100 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 $449,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 24% above cost.

Required:

1. Prepare journal entries to record the transactions above.

2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account record the transactions given above. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $37,000
erincrab353
The Polaris Company uses a job-order costing system. The following data relate to October, the first month of the company’s fiscal year.

Raw materials purchased on account, $210,000.

Raw materials issued to production, $190,000 ($178,000 direct materials and $12,000 indirect materials).

Direct labor cost incurred, $90,000; indirect labor cost incurred, $110,000.

Depreciation recorded on factory equipment, $40,000.

Other manufacturing overhead costs incurred during October, $70,000 (credit Accounts Payable).

The company applies manufacturing overhead cost to production on the basis of $8 per machine-hour. A total of 30,000 machine-hours were recorded for October.

Production orders costing $520,000 according to their job cost sheets were completed during October and transferred to Finished Goods.

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:

Prepare journal entries to record the information given above.

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.

amethystserval205
EXERCISE 3-9 Journal Entries and T-accounts [LO3-2, L03-4, LO3-5] 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. Depreciation recorded on factory equipment, $40,000. e. Other manufacturing overhead costs incurred during October, $70,000 (credit Accounts Payable). f. The company applies manufacturing overhead cost to production on the basis of $8 per machine-hour. A total of 30,000 machine-hours were recorded for October. g. Production orders costing $520,000 according to their job cost sheets were completed during October and transferred to Finished Goods. 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. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant infor- mation above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $42,000.

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, $188,000 ($150,400 direct materials and $37,600 indirect materials).

c. Accrued direct labor cost of $48,000 and indirect labor cost of $20,000.

d. Depreciation recorded on factory equipment, $104,000.

e. Other manufacturing overhead costs accrued during October, $129,000

f. The company applies a manufacturing overhead cost to production using a predetermined rate of $7 per machine-hour. A total of 76,100 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 $449,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 24% above cost.

Required:

1. Prepare journal entries to record the transactions above.

2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account record the transactions given above. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $37,000

erincrab353

The Polaris Company uses a job-order costing system. The following data relate to October, the first month of the company’s fiscal year.

Raw materials purchased on account, $210,000.
Raw materials issued to production, $190,000 ($178,000 direct materials and $12,000 indirect materials).
Direct labor cost incurred, $90,000; indirect labor cost incurred, $110,000.
Depreciation recorded on factory equipment, $40,000.
Other manufacturing overhead costs incurred during October, $70,000 (credit Accounts Payable).
The company applies manufacturing overhead cost to production on the basis of $8 per machine-hour. A total of 30,000 machine-hours were recorded for October.
Production orders costing $520,000 according to their job cost sheets were completed during October and transferred to Finished Goods.
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:

Prepare journal entries to record the information given above.
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.

amethystserval205

EXERCISE 3-9 Journal Entries and T-accounts [LO3-2, L03-4, LO3-5] 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. Depreciation recorded on factory equipment, $40,000. e. Other manufacturing overhead costs incurred during October, $70,000 (credit Accounts Payable). f. The company applies manufacturing overhead cost to production on the basis of $8 per machine-hour. A total of 30,000 machine-hours were recorded for October. g. Production orders costing $520,000 according to their job cost sheets were completed during October and transferred to Finished Goods. 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. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant infor- mation 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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