1. Prepare journal entries to record the transactions given above.

• A. Raw materials purchased on account $210,000
• Record the raw materials issued to production, $191,000 ($152,800 direct materials and $38,200 indirect materials)
• Record the entry for accrued direct labor cost incurred, $49,000; indirect labor cost incurred, $20,000
• Depreciation recorded on factory equipment $106,000
• Other manufacturing overhead costs accrued during October $131,000
• The company applies manufacturing overhead cost to production on the basis of $8 per machine-hour. A total of 76,500 machine-hours were recorded for October
• Job costing $512,000 according to their job cost sheets were completed during October and transferred to finished goods
• Record the cost of good sold
• Record the sales on account

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 $33,000

The Polaris Company uses a job-order costing system. The following transactions occurred in October: a. Raw materials purchased on account, $210,000. b. Raw materials used in production, $191,000 ( $152,800 direct materials and $38,200 indirect materials). c. Accrued direct labor cost of $49,000 and indirect labor cost of $20,000. d. Depreciation recorded on factory equipment, $106,000. e. Other manufacturing overhead costs accrued during October, $131,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 76,500 machine-hou were used in October. g. Jobs costing $512,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $448,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 36% above cost