Check The Polaris Company uses a joborder costing system The

Check 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, $192,000 ($153,600 direct materials and $38,400 indirect materials). c. Accrued direct labor cost of $50,000 and indirect labor cost of $22,000. d. Depreciation recorded on factory equipment, $104,000. e. Other manufacturing overhead costs accrued during October, $129,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $5 per machine-hour. A total of 76,100 machine-hours were used in October g. Jobs costing $512,000 according to their job cost sheets were completed during October and transferred to Finished Goods h. 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 26% above cost Required 1. Prepare journal entries to record the transactions given above 2. Prepare T-accou Compute the ending balance in each account, assuming that Work in Process has a beginning balance of S nts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account Complete this question by entering your answers in the tabs below

Solution

1. In the books of Polaris Company:

2. Work in Process Inventory

Manufacturing Overhead:

Transaction / Event	Account Description	Debit	Credit
		$	$
a.	Raw Materials Inventory	209,000
	Accounts Payable		209,000
b.	Work in Process Inventory	153,600
	Manufacturing Overhead	38,400
	Raw Materials Inventory		192,000
c.	Work in Process Inventory	50,000
	Manufacturing Overhead	22,000
	Wages Payable		72,000
d.	Manufacturing Overhead	104,000
	Accumulated Depreciation: Factory Equipment		104,000
e.	Manufacturing Overhead	129,000
	Accounts Payable		129,000
f.	Work in Process Inventory	380,500
	Manufacturing Overhead		380,500
g.	Finished Goods Inventory	512,000
	Work in Process Inventory		512,000
h.	Accounts Receivable	568,260
	Sales		568,260
	Cost of Goods Sold	451,000
	Finished Goods Inventory		451,000