The Polaris Company uses a job-order costing system. The following data relate to October, the first month of the company’s fiscal year.

Raw materials purchased on account, $210,000.

Raw materials issued to production, $190,000 ($178,000 direct materials and $12,000 indirect materials).

Direct labor cost incurred, $90,000; indirect labor cost incurred, $110,000.

Depreciation recorded on factory equipment, $40,000.

Other manufacturing overhead costs incurred during October, $70,000 (credit Accounts Payable).

The company applies manufacturing overhead cost to production on the basis of $8 per machine-hour. A total of 30,000 machine-hours were recorded for October.

Production orders costing $520,000 according to their job cost sheets were completed during October and transferred to Finished Goods.

Production orders that had cost $480,000 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold on account at 25% above cost.

Required:

Prepare journal entries to record the information given above.

Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant information above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $42,000.

amethystserval205
EXERCISE 3-9 Journal Entries and T-accounts [LO3-2, L03-4, LO3-5] The Polaris Company uses a job-order costing system. The following data relate to October, the first month of the company's fiscal year. a. Raw materials purchased on account, $210,000. b. Raw materials issued to production, $190,000 ($178,000 direct materials and $12,000 indirect materials). c. Direct labor cost incurred, $90,000; indirect labor cost incurred, $110,000. d. Depreciation recorded on factory equipment, $40,000. e. Other manufacturing overhead costs incurred during October, $70,000 (credit Accounts Payable). f. The company applies manufacturing overhead cost to production on the basis of $8 per machine-hour. A total of 30,000 machine-hours were recorded for October. g. Production orders costing $520,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Production orders that had cost $480,000 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold on account at 25% above cost. Required: 1. Prepare journal entries to record the information given above. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant infor- mation above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $42,000.
Foley Company uses a job-order costing system. The following data relate to the month of October, the first month of the company's fiscal year:

a. Raw materials purchased on account, $210,000

b. Raw materials issued to production, $190,000 (80% direct and 20% indirect)

c. Direct labor cost incurred, $49,000; and indirect labor cost incurred, $21,000

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

e. Other manufacturing overhead costs incurred during October, $130,000 (credit Accounts Payable).

f. The company applies manufacturing overhead costs to production on the basis of $4 per machine-hour. A total of 75,000 machine-hours were recorded for October.

g. Production orders costing $510,000 according to their job cost sheets were completed during October and transferred to Finished Goods

h. Production orders that had cost $450,000 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold on account at 50% above cost.

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

2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant information above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $35,000.
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Question

The Polaris Company uses a job-order costing system. The following data relate to October, the first month of the company’s fiscal year.

Raw materials purchased on account, $210,000.
Raw materials issued to production, $190,000 ($178,000 direct materials and $12,000 indirect materials).
Direct labor cost incurred, $90,000; indirect labor cost incurred, $110,000.
Depreciation recorded on factory equipment, $40,000.
Other manufacturing overhead costs incurred during October, $70,000 (credit Accounts Payable).
The company applies manufacturing overhead cost to production on the basis of $8 per machine-hour. A total of 30,000 machine-hours were recorded for October.
Production orders costing $520,000 according to their job cost sheets were completed during October and transferred to Finished Goods.
Production orders that had cost $480,000 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold on account at 25% above cost.

Required:

Prepare journal entries to record the information given above.
Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant information above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $42,000.

amethystserval205

EXERCISE 3-9 Journal Entries and T-accounts [LO3-2, L03-4, LO3-5] The Polaris Company uses a job-order costing system. The following data relate to October, the first month of the company's fiscal year. a. Raw materials purchased on account, $210,000. b. Raw materials issued to production, $190,000 ($178,000 direct materials and $12,000 indirect materials). c. Direct labor cost incurred, $90,000; indirect labor cost incurred, $110,000. d. Depreciation recorded on factory equipment, $40,000. e. Other manufacturing overhead costs incurred during October, $70,000 (credit Accounts Payable). f. The company applies manufacturing overhead cost to production on the basis of $8 per machine-hour. A total of 30,000 machine-hours were recorded for October. g. Production orders costing $520,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Production orders that had cost $480,000 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold on account at 25% above cost. Required: 1. Prepare journal entries to record the information given above. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant infor- mation above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $42,000.

Foley Company uses a job-order costing system. The following data relate to the month of October, the first month of the company's fiscal year:

a. Raw materials purchased on account, $210,000

b. Raw materials issued to production, $190,000 (80% direct and 20% indirect)

c. Direct labor cost incurred, $49,000; and indirect labor cost incurred, $21,000

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

e. Other manufacturing overhead costs incurred during October, $130,000 (credit Accounts Payable).

f. The company applies manufacturing overhead costs to production on the basis of $4 per machine-hour. A total of 75,000 machine-hours were recorded for October.

g. Production orders costing $510,000 according to their job cost sheets were completed during October and transferred to Finished Goods

h. Production orders that had cost $450,000 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold on account at 50% above cost.

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

2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant information above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $35,000.

redweasel757

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