Compute the ending balance in each account

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Reference no: EM133494859

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

Raw materials purchased on account, $210,000.
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, $129,000.
The company applies manufacturing overhead cost to production using a predetermined rate of $5 per machine-hour. A total of 76,400 machine-hours were used in October.
Jobs costing $514,000 according to their job cost sheets were completed during October and transferred to Finished Goods.
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 26% above cost.

Required:

Question 1. Prepare journal entries to record the transactions given above.

Question 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.

a.Record the raw materials issued to production, $189,000 ($151,200 direct materials and $37,800 indirect materials).

b.Record the entry for accrued direct labor cost incurred, $48,000; indirect labor cost incurred, $21,000.

c.Depreciation recorded on factory equipment, $105,000.

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

e.The company applies manufacturing overhead cost to production on the basis of $5 per machine-hour. A total of 76,400 machine-hours were recorded for October.

f.Jobs costing $514,000 according to their job cost sheets were completed during October and transferred to Finished Goods.

g.Record the cost of goods sold.

h.Record the sales on account.

Reference no: EM133494859

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