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![The Polaris Company uses a job-order costing system. The following data relate to Octobet, die<br>first month of the company's fiscal year.<br>Raw materials purchased on account, $210,000.<br>-9 Journal Entries and T-accounts [LO3-2, LO3-4, LO3-5]<br>TO JUB 313? What is the unit product cost for Job 313?<br>a.<br>b.<br>Raw materials issued to production, $190.000 ($178.000 direct materials and $12,000 indirect<br>Ince<br>materials).<br>Direct labor cost incurred, $90,000; indirect labor cost incurred, $110,000.<br>Depreciation recorded on factory equipment, $40,000.<br>Other manufacturing overhead costs incurred during October, $70,000 (credit Accounts<br>Payable).<br>Sale<br>(COG<br>Gro<br>c.<br>d.<br>e.<br>The company applies manufacturing overhead cost to production on the basis of $8 per<br>machine-hour. A total of 30,000 machine-hours were recorded for October.<br>Production orders costing $520,000 according to their job cost sheets were completed during<br>f.<br>g.<br>Se<br>October and transferred to Finished Goods.<br>Production orders that had cost $480.000 to complete according to their job cost sheets were<br>shipped to customers during the month. These goods were sold on account at 25% above cost.<br>h.<br>Required:<br>Prepare journal entries to record the information given above.<br>1.<br>Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant infor-<br>2.<br>mation above to each account. Compute the ending balance in each account, assuming that<br>Work in Process has a beginning balance of $42,000.<br>EXERCISE 3-10 Applying Overhead to a Job [LO3-2]<br>Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which<br>was started and completed during the current period, shows charges of $5,000 for direct materials,<br>$8.000 for direct labor, and $6,000 for overhead on its job cost sheet. Job W, which is still in pro-<br>cess at year-end, shows charges of $2,500 for direct materials and $4,000 for direct labo.<br>Required:<br>Should any overhead cost be added to Job W at year-end? If so, how much? Explain.<br>](https://s3.us-east-1.amazonaws.com/storage.unifolks.com/qimg-008/008_bhyizz0-bz5lo2vt.jpeg)
Extracted text: The Polaris Company uses a job-order costing system. The following data relate to Octobet, die first month of the company's fiscal year. Raw materials purchased on account, $210,000. -9 Journal Entries and T-accounts [LO3-2, LO3-4, LO3-5] TO JUB 313? What is the unit product cost for Job 313? a. b. Raw materials issued to production, $190.000 ($178.000 direct materials and $12,000 indirect Ince materials). Direct labor cost incurred, $90,000; indirect labor cost incurred, $110,000. Depreciation recorded on factory equipment, $40,000. Other manufacturing overhead costs incurred during October, $70,000 (credit Accounts Payable). Sale (COG Gro c. d. e. The company applies manufacturing overhead cost to production on the basis of $8 per machine-hour. A total of 30,000 machine-hours were recorded for October. Production orders costing $520,000 according to their job cost sheets were completed during f. g. Se October and transferred to Finished Goods. Production orders that had cost $480.000 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold on account at 25% above cost. h. Required: Prepare journal entries to record the information given above. 1. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant infor- 2. mation above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $42,000. EXERCISE 3-10 Applying Overhead to a Job [LO3-2] Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $5,000 for direct materials, $8.000 for direct labor, and $6,000 for overhead on its job cost sheet. Job W, which is still in pro- cess at year-end, shows charges of $2,500 for direct materials and $4,000 for direct labo. Required: Should any overhead cost be added to Job W at year-end? If so, how much? Explain.