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

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

  1. Raw materials purchased on account, $210,000.
  2. Raw materials used in production, $190,000 ($152,000 direct materials and $38,000 indirect materials).
  3. Accrued direct labor cost of $49,000 and indirect labor cost of $20,000.
  4. Depreciation recorded on factory equipment, $106,000.
  5. Other manufacturing overhead costs accrued during October, $129,000.
  6. The company applies manufacturing overhead cost to production using a predetermined rate of $7 per machine-hour. A total of 76,300 machine-hours were used in October.
  7. Jobs costing $512,000 according to their job cost sheets were completed during October and transferred to Finished Goods.
  8. 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 34% above cost.

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 $34,000.

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 $34,000.

Manufacturing overhead

b.
c.
d.
e.
end. bal.

Work in process

beg. bal. 34,000
b.
c.
f.
End. Bal.


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The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials purchased on account, $210,000. Raw materials used in production, $188,000 ($150,400 direct materials and $37,600 indirect materials). Accrued direct labor cost of $48,000 and indirect labor cost of $22,000. Depreciation recorded on factory equipment, $105,000. Other manufacturing overhead costs accrued during October, $129,000. The company applies manufacturing overhead cost to production using a predetermined rate of $9 per machine-hour. A total of 76,400 machine-hours...
The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials...
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