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, $191,000 ($152,800 direct materials and $38,200 indirect materials). Accrued direct labor cost of $49,000 and indirect labor cost of $21,000. Depreciation recorded on factory equipment, $106,000. Other manufacturing overhead costs accrued during October, $130,000. The company applies manufacturing overhead cost to production using a predetermined rate of $9 per machine-hour. A total of 76,300 machine-hours were used in October. Jobs costing $513,000 according to their job cost sheets were completed during October and transferred to Finished Goods. 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 28% above cost.   Can you please help me with the following:  Prepare journal entries to record the transactions given above and 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 $35,000.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 4DQ: Define and explain the two major subsystems of the cost management information system.
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The Polaris Company uses a job-order costing system. The following transactions occurred in October:

 

  1. Raw materials purchased on account, $211,000.
  2. Raw materials used in production, $191,000 ($152,800 direct materials and $38,200 indirect materials).
  3. Accrued direct labor cost of $49,000 and indirect labor cost of $21,000.
  4. Depreciation recorded on factory equipment, $106,000.
  5. Other manufacturing overhead costs accrued during October, $130,000.
  6. The company applies manufacturing overhead cost to production using a predetermined rate of $9 per machine-hour. A total of 76,300 machine-hours were used in October.
  7. Jobs costing $513,000 according to their job cost sheets were completed during October and transferred to Finished Goods.
  8. 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 28% above cost.

 

Can you please help me with the following: 

Prepare journal entries to record the transactions given above and 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 $35,000.

Debit
Beginning balance
Ending balance
Manufacturing Overhead
Credit
Debit
Beginning balance
Ending balance
Work in Process
Credit
Transcribed Image Text:Debit Beginning balance Ending balance Manufacturing Overhead Credit Debit Beginning balance Ending balance Work in Process Credit
Please Prepare journal entries to record the transactions given below:
1 Raw materials purchased on account, $211,000.
2
Record the raw materials issued to production, $191,000
($152,800 direct materials and $38,200 indirect
materials).
3 Record the entry for accrued direct labor cost incurred,
$49,000; indirect labor cost incurred, $21,000.
4 Depreciation recorded on factory equipment, $106,000.
5 Other manufacturing overhead costs accrued during
October, $130,000.
6 The company applies manufacturing overhead cost to
production on the basis of $9 per machine-hour. A total of
76,300 machine-hours were recorded for October.
7 Jobs costing $513,000 according to their job cost sheets
were completed during October and transferred to
Finished Goods.
Record the cost of goods sold.
9 Record the sales on account.
Transcribed Image Text:Please Prepare journal entries to record the transactions given below: 1 Raw materials purchased on account, $211,000. 2 Record the raw materials issued to production, $191,000 ($152,800 direct materials and $38,200 indirect materials). 3 Record the entry for accrued direct labor cost incurred, $49,000; indirect labor cost incurred, $21,000. 4 Depreciation recorded on factory equipment, $106,000. 5 Other manufacturing overhead costs accrued during October, $130,000. 6 The company applies manufacturing overhead cost to production on the basis of $9 per machine-hour. A total of 76,300 machine-hours were recorded for October. 7 Jobs costing $513,000 according to their job cost sheets were completed during October and transferred to Finished Goods. Record the cost of goods sold. 9 Record the sales on account.
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