FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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answer in text form please (without image), Note: .Every entry should have narration please
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, $190,000 ($152,000 direct materials and $38,000 indirect materials).
- Accrued direct labor cost of $49,000 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 76,200 machine-hours were used in October. - Jobs costing $512,000 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 22% above cost.
Required:
1. Prepare
2. Prepare T-accounts for Manufacturing Overhead and Work in Process.
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