The Polaris Company uses a job-order costing system. The following transactions occurred in October:
a. Raw materials purchased on account. $211.000 Raw materials used in production, $189,000 ($151,200 direct materials and $37,800 indirect materials). Accrued direct labor cost of $49.000 and indirect labor cost of $21.000.
d. Depreciation recorded on factory equipment. $106,000. Other manufacturing overhead costs accrued during October, $130,000
1. The company applies manufacturing overhead cost to production using a predetermined rate of $7 per machine-hour. A total of 76.300 machine-hours were used in October.
- Jobs costing $512.000 according to their job cost sheets were completed during October and transferred to Finished Goods
- Jobs that had cost $452.000 to complete according to their job cost sheets were shipped to customers during the month. These Jobs were sold on account at 32% above cost.
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 $36,000.
Journal entry worksheet Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactlons from above to each account. Compute the ending balance in each acceunt, assuming that Werk in Process has a beginning balance of $36,000. Journal entry worksheet Depreciation recorded on factory equipment, $106,000. Note: Enter debits before credits. Journal entry worksheet 1 9 Other manufacturing overhead costs accrued during October, $130,000. Note: Enter debits before credits. Journal entry worksheet Jobs costing $512,000 according to their job cost sheets were completed during October and transferred to Finished Goods. Note: Enter debits before credits. Journal entry worksheet 9 Record the entry for accrued direct labor cost incurred, $49,000; indirect labor cost incurred, $21,000. Note: Enter debits before credits. Journal entry worksheet 56 Raw materials purchased on account, $211,000. Note: Enter debits before credits. Record the cost of goods sold. Note: Enter debits before credits. Journal entry worksheet The company applies manufacturing overhead cost to production on the basis of $7 per machine-hour. A total of 76,300 machine-hours were recorded for October. Note: Enter debits before credits. Journal entry worksheet Record the raw materials issued to production, $189,000 ( $151,200 direct materials and $37,800 indirect materials). Note: Enter debits before credits 
