Check The Polaris Company uses a job-order costing system. The following transac
ID: 2605758 • Letter: C
Question
Check The Polaris Company uses a job-order costing system. The following transactions occurred in October a Raw materials purchased on account, $209,000. b. Raw materials used in production, $192,000 ($153,600 direct materials and $38,400 indirect materials). c. Accrued direct labor cost of $50,000 and indirect labor cost of $22,000. d. Depreciation recorded on factory equipment, $104,000. e. Other manufacturing overhead costs accrued during October, $129,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $5 per machine-hour. A total of 76,100 machine-hours were used in October g. Jobs costing $512,000 according to their job cost sheets were completed during October and transferred to Finished Goods h. Jobs that had cost $451,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 26% above cost Required 1. Prepare journal entries to record the transactions given above 2. Prepare T-accou Compute the ending balance in each account, assuming that Work in Process has a beginning balance of S nts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account Complete this question by entering your answers in the tabs belowExplanation / Answer
1. In the books of Polaris Company:
2. Work in Process Inventory
Manufacturing Overhead:
Transaction / Event Account Description Debit Credit $ $ a. Raw Materials Inventory 209,000 Accounts Payable 209,000 b. Work in Process Inventory 153,600 Manufacturing Overhead 38,400 Raw Materials Inventory 192,000 c. Work in Process Inventory 50,000 Manufacturing Overhead 22,000 Wages Payable 72,000 d. Manufacturing Overhead 104,000 Accumulated Depreciation: Factory Equipment 104,000 e. Manufacturing Overhead 129,000 Accounts Payable 129,000 f. Work in Process Inventory 380,500 Manufacturing Overhead 380,500 g. Finished Goods Inventory 512,000 Work in Process Inventory 512,000 h. Accounts Receivable 568,260 Sales 568,260 Cost of Goods Sold 451,000 Finished Goods Inventory 451,000