Business, 04.03.2020 06:01 androw4116

The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials purchased on account, $209,000. Raw materials used in production, $190,000 ($152,000 direct materials and $38,000 indirect materials). Accrued direct labor cost of $48,000 and indirect labor cost of $22,000. Depreciation recorded on factory equipment, $104,000. Other manufacturing overhead costs accrued during October, $131,000. 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 $512,000 according to their job cost sheets were completed during October and transferred to Finished Goods. Jobs that had cost $449,000 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.

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Answer from: tasphipps

The question is incomplete. Missing Portion is written as bold in explanation.

Explanation:

Required:

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

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 $37,000.

Account Dr Cr

1.Raw materials 209000

Account payable-Liability 209000

The Materials are purchased in credit.

2. Work In Process 152000

Manufacturing Overhead 38000

Raw materials 190000

Entry for Materials used in Production.

3. Work In Process 48000

Manufacturing Overhead 22000

Salaries payable 70000

4.Manufacturing Overhead 104000

Depreciation 104000

5. Manufacturing Overhead 131000

Account payable 131000

6.Work In Process 686700 ( 9 x 76300= 686700)

Manufacturing Overhead 686700

7.Finished Goods 512000

Work In Process 512000

8.Cost of goods sold 449000

Finished Goods 449000

Accounts Receivable 547780

Sales Revenue 547780

**Sales - Cost of job * 1.22 (22 % above cost)

2. T-accounts for Manufacturing Overhead and Work in Process.

Manufacturing overhead

Dr Cr

22000 686700

38000

104000

131000

Ending balance 391700 - Favorable

Work In process

Dr Cr

beginning bal. 37000

152000

48000 512000

686700

Ending balance 411700

Answer from: Quest

answer; the correct answer is (0.08);

Answer from: Quest

the first one $24,630

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

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