03 Homework Help Exercise 35 Journal Entries and Taccounts L

03 Homework Help Exercise 3-5 Journal Entries and T-accounts [LO3-1, LO3-2] The Polaris Company uses a job-order costing system. The following transactions occurred in October: a. Raw materials purchased on account, $209,000 b. Raw materials used in production, $188,000 ($150,400 direct materials and $37,600 indirect materials). c. Accrued direct labor cost of $50,000 and indirect labor cost of $22,000. d. Depreciation recorded on factory equipment, $105,000. e. Other manufacturing overhead costs accrued during October, $130,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $9 per machine-hour. A total of 76,500 machine-hours were used in October. g. Jobs costing $514,000 according to their job cost sheets were completed during October and transferred to Finished Goods h. 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 30% above cost. Required: 2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. I entries to record the transactions given above Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $35.000 Complete this question by entering your answers in the tabs below Required 1 Required 2 Prepare journal entries to record the transactions given above. (If no entry is required for a transaction/event, select \"No journal entry required the first account field.)

Solution

1. Journal Entries: Date Accounts Titles Debit $ Credit $ a Material 209000 AP 209000 b WIP 150400 Manuf. O/h 37600 Material 188000 c WIP 50000 Manuf. O/h 22000 Labor payable 72000 d Manuf. O/h 105000 Depreciation exp 105000 e Manuf. O/h 130000 Other exp 130000 f WIP 688500 Manuf. O/h 688500 (76500*9=688500) g FG Inventory 514000 WIP 514000 h AR 587600 Sales revenue 587600 (452000*1.3=587600) 2. T-Accounts: Debit Amount $ Credit Amount$ Manufacturing Overhead account: b 37600 f 688500 c 22000 d 105000 e 130000 CB 393900 Total 688500 Total 688500 WIP account: b 150400 g 514000 c 50000 CB 374900 f 688500 Total 888900 Total 888900