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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.
In: Accounting
On May 1, Year 1, KLM orders equipment from a supplier in Luxemburg for €100,000 with delivery scheduled for October 1, Year 1. Payment is due on December 31, Year 1. On May 2, Year 1 KLM enters into an 8-month forward contract with its bank at a rate of €1 = $1.38 to purchase €100,000 on December 31, Year 1, the date the accounts payable is due. The equipment is delivered on October 1, Year 1, and immediately put into use. The forward contract and the payable to the supplier are settled on December 31, Year 1.
Exchange rates for one euro for Year 1 were as follows:
Spot RateForward Rate* May 1 and 2, Year 1 $1.35 $1.38 October 1, Year 1 $1.37 $1.39 December 31, Year 1 $1.36 $1.36
Required Prepare journal entries to reflect the above transactions from May 1 to December 31, Year 1, excluding adjusting entry for depreciation expense. Assume that KLM designates the forward contract as a cash-flow hedge and clears the cumulative other comprehensive income account when the equipment is delivered on October 1, Year 1
In: Accounting
Please complete the October journal entries with the information provided. (Not all information provided may be relevant in completing the question).
| Inventory Information | ||||
| Inventory on hand at the beginning of October: | ||||
| Units | Cost / unit | Total Cost | ||
| Purchase # 1 | 15 | 60 | $900 | |
| Purchase # 2 | 25 | 70 | 1,750 | |
| 40 | $2,650 | |||
| October 2018 transactions related to buying and selling widget inventory | ||||
| 1-Oct | Sold 30 widgets at $125 each on credit | |||
| 3-Oct | Purchased 60 widgets at a cost of $80 per widget on credit | |||
| 10-Oct | Sold 45 widgets at $150 each on credit | |||
| 20-Oct | Purchased 40 widgets at a cost of $85 per widget on credit | |||
| 24-Oct | Sold 35 widgets at $165 each on credit | |||
| The PHYSICAL count of widget inventory on hand at October 31, 2018 shows 23 widgets at a FIFO cost of $1,955. | ||||
| Number of Days Outstanding | ||||||
| Total | 0-30 | 31-60 | 61-90 | 91-120 | over 120 | |
| Accounts Receivable | $ 163,075 | $146,768 | $ 6,523 | $ 3,262 | $ 4,892 | $ 1,631 |
| % Uncollectible | 0.02 | 0.06 | 0.075 | 0.08 | 0.09 | |
| Estimated Uncollectible | $ 4,109 | 2,935 | 391 | 245 | 391 | 147 |
In: Accounting