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The Polaris Company uses a job-order costing system. The following transactions occurred in October: a. Row materials purchased on account, $210,000. b. Raw materials used in production, $190,000 (S178,000 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. 1. The company applies manufacturing overhesd cost to production using a predetermined rate of $8 per machine-hour. A total of 30,000 machine-hours were used in October. g. 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-acounts for Manufocturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in esch account, ossuming that Work in Process has a beginning balance of $42,000.

The Polaris Company uses a job-order costing system. The following transactions occurred in October: a. Row materials purchased on account, $210,000. b. Raw materials used in production, $190,000 (S178,000 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. 1. The company applies manufacturing overhesd cost to production using a predetermined rate of $8 per machine-hour. A total of 30,000 machine-hours were used in October. g. 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-acounts for Manufocturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in esch account, ossuming that Work in Process has a beginning balance of $42,000.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter2: Job Order Costing
Section: Chapter Questions
Problem 1PA: Barnes Company uses a job order cost system. The following data summarize the operations related to...
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The Polaris Company uses a job-order costing system. The following transsctions occurred in October: a. Row materials purchased on account, $210,000. b. Row materials used in production, $190,000 ($178,000 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 overhesd cost to production using a predetermined rate of $8 per machine-hour. A total of 30,000 machine-hours were used in October. g. Jobs costing $520,000 sccording to their job cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $480,000 to complete sccording to their job cost sheets were shipped to customers during the month. These jobs were sold on sccount at 25% above cost. Required: 1. Prepare journal entries to record the transactions given above. 2. Prepare T-accounts for Manufecturing Overhesd and Work in Process. Post the relevant transactions from above to each sccount. Compute the ending balance in esch account, assuming that Work in Process has a beginning balance of $42,000. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record the transactions given above. (Ir no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Vlew transaction llat Journal entry worksheet 3 4 5 6 1 2 7 Raw materials purchased on account, $210,000. Note: Enter debits before credits. Traneaction General Journal Debit Credit a. Record entry Clear entry Vew general Joumal Required 1 Required 2 > co
Transcribed Image Text:The Polaris Company uses a job-order costing system. The following transsctions occurred in October: a. Row materials purchased on account, $210,000. b. Row materials used in production, $190,000 ($178,000 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 overhesd cost to production using a predetermined rate of $8 per machine-hour. A total of 30,000 machine-hours were used in October. g. Jobs costing $520,000 sccording to their job cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $480,000 to complete sccording to their job cost sheets were shipped to customers during the month. These jobs were sold on sccount at 25% above cost. Required: 1. Prepare journal entries to record the transactions given above. 2. Prepare T-accounts for Manufecturing Overhesd and Work in Process. Post the relevant transactions from above to each sccount. Compute the ending balance in esch account, assuming that Work in Process has a beginning balance of $42,000. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record the transactions given above. (Ir no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Vlew transaction llat Journal entry worksheet 3 4 5 6 1 2 7 Raw materials purchased on account, $210,000. Note: Enter debits before credits. Traneaction General Journal Debit Credit a. Record entry Clear entry Vew general Joumal Required 1 Required 2 > co
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