The Polaris Company uses a job-order costing system. The following data relate t

Question

The Polaris Company uses a job-order costing system. The following data relate to October, the first month of the company's fiscal year a Raw materials purchased on aocount $211,000 b. Raw materials issued to production, $191,000($152.800 direct materials and $38.200 indirect materials) c. Direct labor cost incurred, 348,000; indirect labor cost incurred 522,000 d. Depreciation recorded on fsctory equipment. $105,000 e. Other manufacturing overhead costs incurred during October, $129.000 (oredit Accounts Payable) The company applies manufacturing overhead cost to production on the bass of 30 per machine-hour. A total of 76,300 machine-hours were recorded for October g Production orders costing $513,000 aocording to their job cost sheets were completed during October and transferred to Finished Goods Production orders that had cost $440 000 to complete according to ther job cost sheets were shipped to customers dmg the month. These goods were sold on acoount at 22% above cost Required 1. Prepare journal entres to record the informaton given above no entry is required for a transactionlevent, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Raw materials purchased on acceunt, $211,000. Record entry Clear entry View general journal 2 Prepare T-accounts for Manufacturing Overhead and Work in Process Post the relevant informasion above to each account Compute the ending balance in each account, assuming that Work in Process has a beginning balanoe of38.000 Beg Ba Beg Bal End. Bal End. Bal

Explanation / Answer

a Raw material inventory 211000          Accounts payable 211000 b Work in progress inventory 152800 Manufacturing overheads 38200            Raw material inventory 191000 c Work in progress inventory 48000 Manufacturing overheads 22000             Wages payable 70000 d Manufacturing overheads 105000             Accumulated depreciation - equipment 105000 e Manufacturing overheads 129000             Accounts payable 129000 f Work in progress inventory 686700 (76300*9)             Manufacturing overheads 686700 g Finished goods inventory 513000             Work in progress inventory 513000 h Cost of goods sold 449000              Finished goods inventory 449000 Schedule for manufacturing cost beginning raw material 8000 Add Purchase of raw material 137000 Total 145000 Less Ending Raw material 10400 Raw material used in production 134600 Direct labor 85000 manufacturing cost applied 209000 Total manufacturing cost 428600 Add Beginning work in progress 5900 434500 less Ending work in progress 20700 Cost of goods manufactured 413800 Add Beginning finished goods inventory 79000 Cost of goods available for sale 492800 Less Ending finished goods inventory 25300 unadjusted Cost of goods sold 467500 Add Under applied overheads 11000 Cost of goods sold 478500 Schedule for net income Sales revenue 654000 Less Cost of goods sold unadjusted Cost of goods sold 467500 Under applied manufacturing OH 11000 478500 Gross profit 176000 Less Expenses Admin expense 101000 Selling expense 43000 144000 Net operating income 32000

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