The Polaris Company uses a job-order costing system. Thefollowing transactions occurred in October:
Raw materials purchased on account, $210,000.
Raw materials used in production, $189,000 ($151,200 directmaterials and $37,800 indirect materials).
Accrued direct labor cost of $49,000 and indirect labor cost of$20,000.
Depreciation recorded on factory equipment, $106,000.
Other manufacturing overhead costs accrued during October,$130,000.
The company applies manufacturing overhead cost to productionusing a predetermined rate of $6 per machine-hour. A total of76,200 machine-hours were used in October.
Jobs costing $511,000 according to their job cost sheets werecompleted during October and transferred to Finished Goods.
Jobs that had cost $452,000 to complete according to their jobcost sheets were shipped to customers during the month. These jobswere sold on account at 28% above cost.
Required:
1. Prepare journal entries to record the transactions givenabove.
2. Prepare T-accounts for Manufacturing Overhead and Work inProcess. Post the relevant transactions from above to each account.Compute the ending balance in each account, assuming that Work inProcess has a beginning balance of $36,000.
