60.1K

Verified Solution

Link Copied!

The Polaris Company uses a job-order costing system. The following transactions occurred in October:

Raw materials purchased on account, $211,000.

Raw materials used in production, $189,000 ($151,200 direct materials and $37,800 indirect materials).

Accrued direct labor cost of $48,000 and indirect labor cost of $21,000.

Depreciation recorded on factory equipment, $105,000.

Other manufacturing overhead costs accrued during October, $131,000.

The company applies manufacturing overhead cost to production using a predetermined rate of $5 per machine-hour. A total of 76,300 machine-hours were used in October.

Jobs costing $511,000 according to their job cost sheets were completed during October and transferred to Finished Goods.

Jobs that had cost $450,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 22% 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 $36,000.

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 $36,000.

Required 2

	Manufacturing Overhead Work in Process Beg. Bal. End. Bal. End. Bal.

Answer & Explanation Solved by verified expert

See Answer