In: Accounting
The Polaris Company uses a job-order costing system. The following transactions occurred in October:
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.
Ques 1
Date | General Journal | Debit | Credit |
a | Raw Materials inventory | 210000 | |
Accounts payable | 210000 | ||
b | Work In process inventory | 152000 | |
Manufacturing overhead | 38000 | ||
Raw Materials inventory | 190000 | ||
c | Work in process | 49000 | |
Manufacturing overhead | 21000 | ||
Salaries & wages payable | 70000 | ||
d | Manufacturing overhead | 105000 | |
Accumulated depreciation | 105000 | ||
e | Manufacturing overhead | 131000 | |
Accounts payable | 131000 | ||
f | Work In process | 381000 | |
Manufacturing overhead | 381000 | ||
(76200)*$5.00 | |||
g | Finished goods inventory | 512000 | |
Work In process | 512000 | ||
h | Accounts receivable | 551440 | |
sales | 551440 | ||
(452000*122%) | |||
Cost of goods sold | 452000 | ||
finished goods inventory | 452000 | ||
Ques 2
Manufacturing overhead | |||
b | 38000 | f | 381000 |
c | 21000 | ||
d | 105000 | ||
e | 131000 | ||
end bal | 86000 | ||
Work in process | |||
Beginning balance | 34000 | g | 512000 |
b | 152000 | ||
c | 49000 | ||
f | 381000 | ||
end bal | 104000 |