ACG 3101 Lecture Notes - Lecture 2: Retained Earnings, Income Statement, Financial Statement
Get access
Related Documents
Related Questions
The Polaris Company uses a job-order costing system. Thefollowing transactions occurred in October:
Raw materials purchased on account, $210,000.
Raw materials used in production, $190,000 ($152,000 directmaterials and $38,000 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,$130,000.
The company applies manufacturing overhead cost to productionusing a predetermined rate of $5 per machine-hour. A total of76,100 machine-hours were used in October.
Jobs costing $511,000 according to their job cost sheets werecompleted during October and transferred to Finished Goods.
Jobs that had cost $449,000 to complete according to their jobcost sheets were shipped to customers during the month. These jobswere sold on account at 30% above cost.
Required:
1. Prepare journal entries to record the transactions givenabove.
2. Prepare T-accounts for Manufacturing Overhead and Work inProcess. Post the relevant transactions from above to each account.Compute the ending balance in each account, assuming that Work inProcess has a beginning balance of $34,000.
Raw materials purchased on account, $210,000.
Note: Enter debits before credits.
|
Record the raw materials issued to production, $190,000($152,000 direct materials and $38,000 indirect materials).
Note: Enter debits before credits.
|
Record the entry for accrued direct labor cost incurred,$48,000; indirect labor cost incurred, $21,000.
Note: Enter debits before credits.
Depreciation recorded on factory equipment, $105,000. Note: Enter debits before credits.
Other manufacturing overhead costs accrued during October,$130,000. Note: Enter debits before credits.
|
Record the cost of goods sold.
Note: Enter debits before credits.
|
Record the sales on account.
Note: Enter debits before credits.
|
Prepare T-accounts for Manufacturing Overhead and Work inProcess. Post the relevant transactions from above to each account.Compute the ending balance in each account, assuming that Work inProcess has a beginning balance of $34,000.
|