Question

The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials purchased on account, $210,000. Raw materials used in production, $190,000 ($152,000 direct materials and $38,000 indirect materials). Accrued direct labor cost of $49,000 and indirect labor cost of $21,000. Depreciation recorded on factory equipment, $105,000. Other manufacturing overhead costs accrued during October, $129,000. The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 76,400 machine-hours were used in October. Jobs costing $510,000 according to their job cost sheets were completed during October and transferred to Finished Goods. Jobs that had cost $450,000 t

Answer 1

The Polaris Company uses a job-order costing system to manage and allocate production costs based on various October transactions, including materials, labor, and overhead.

Step-by-step explanation:

The Polaris Company utilizes a job-order costing system to track production costs. In October, various transactions took place including the purchase of raw materials, use of direct and indirect materials, labor costs, machine-hours used, and the recording of other manufacturing overhead costs. To apply manufacturing overhead, the company uses a predetermined rate based on machine-hours. A thorough understanding of these transactions is essential for accurately calculating job costs and assessing the financial performance of the Polaris Company.