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 account, ￡210,000.
(b) Raw materials issued to production, ￡190,000 (￡178,000 direct materials and ￡12,000 indirect materials).
(c) Direct labour cost incurred, ￡90,000; indirect labour cost incurred, ￡110,000.
(d) Depreciation recorded on factory equipment, ￡40,000.
(e) Other manufacturing overhead costs incurred during October, ￡70,000 (credit Accounts receivable).
(f) The company applies manufacturing overhead cost to production on the basis of ￡8 per machine-hour.
There were 30,000 machine-hours recorded for October.
(g) Production orders costing ￡520,000 according to their job cost sheets were completed during October and transferred to Finished Goods.
(h) 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 at 25% above cost. The goods were sold on account.

Required

1. Prepare journal entries to record the information given above.
2. Prepare T-accounts for Manufacturing Overhead and Work in Progress. Post the relevant information above to each account. Compute the ending balance in each account, assuming that Work in Progress has a beginning balance