3 Exercise 3-5 (Algo) Journal Entries and T-accounts [LO3-1, LO3-2) The Polaris Company uses a job-order costing system. The following transactions occurred in October 27:51 8. Raw materials purchased on account, $209,000 b. Raw materials used in production. $191,000 ($152.800 direct materials and $38.200 indirect materiais) c. Accrued direct labor cost of $48.000 and indirect labor cost of $20,000 d. Depreciation recorded on factory equipment, $105.000 e. Other manufacturing overhead costs accrued dur October, $131.000 f. The company applies manufacturing overhead coa production using a predetermined rate of $5 per machine hour. A total of 76,200 machine-hours were used in October 9. Jobs costing $514,000 according to their job coit 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 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 trom above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $34.000 Complete this question by entering your answers in the tabs below