FINAL EXAM 0 3 The Polans Company uses a pb-ordes costing system The following t

Question

FINAL EXAM 0 3 The Polans Company uses a pb-ordes costing system The following transactions occurred in October a Rarw matentiah purhwsed on account, 5210000 b Raw maternsls used in production $18,000(ST0 400 drect matenials and $37 600 indrect matersak c Accrued derext labor cost of $49,000 and indirect labor cost of $20.000 d Depreciation recorded on factory equipment 505,000 e Other manufacturing overhead costs acqrued during Octobes,$131,000 1 The company applies manufectring ovethead cost to production using a predetermaned rate of $5 per machine hour A total of 76.400 mactine hours were used in October g Jobs costing $512.000 accodig to thee ob cost sheets were completed during October and transferned to Fnished Goods h Jobs that had cost $452,000 to complete according to their joh cost sheets were shigped to customers duing the month These jobs were sold ont accout at 36% above cost Required 1 Prepare youmal entnes to record the sactions gven above 2 Prepare T-accounts for Manufacturing Overhead and Work an Process Post the tetevare tensactions from above to each accut Compute the ending balance in each account, assuming that Work n Process has d begnning balance of 536,00o Complete this question by entering your answers in the tabs below

Explanation / Answer

Journal entries: S.no. Accounts title and explanations Debit $ Credit $ a Raw material Inventory Account Dr. 210,000         Accounts payable 210,000 b. Work in process invevntory Dr. 150400 Manufacturing OH account Dr. 37600         Raw material inventory 188,000 c. Work in process invevntory Dr. 49000 Manufacturing OH account Dr. 20000        Wages payable 69000 d. Manufacturing oH Dr. 105000         Accumulated depreciation 105000 e. Manufacturing oH Dr. 131000     Accounts payable 131000 f. Work in process inventory Dr. (76400 MH @ 5) 382000       Manufacturing oh 382000 g. Finished Goods invnentory Dr. 512,000          Work in process inventory 512,000 h. Cost of g oods sold Dr. 452,000         Finished Goods inventory 452,000 Accounts receivable Dr. (452000+36%) 614720            Sales revenue 614720 MANUFACTURING OVERHEADS Raw material Inventory 37600 Wages payable 20000 Acc. Dep 105,000 Work in Process 382,000 Accounts payable 131,000 Balannce 88400 WORK IN PROCESS INVENTORY Balance 36,000 Finished Goods Inventory 512,000 Raw material Inv. 150,400 Wages Payable 49,000 Manufacturing Overheads 382,000 Balance 105,400

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