Exercise $3-5($Algo$)$ Journal Entries and T$-$accounts $[$LO$3-1,$ LO$3-2]$

The Polaris Company uses a job$-$order costing system. The following transactions occurred in October:

a$.$ Raw materials purchased on account, $$211,000.$

b$.$ Raw materials used in production, $$191,000($ $$152,800$ direct materials and $$38,200$ indirect materials$).$

c$.$ Accrued direct labor cost of $$48,000$ and indirect labor cost of $$21,000.$

d$.$ Depreciation recorded on factory equipment, $$105,000$

e$.$ Other manufacturing overhead costs accrued during October, $$130,000.$

f$.$ The company applies manufacturing overhead cost to production using a predetermined rate of $$10$ per machine$-$hour. A total of $76,200$ machine$-$hours were used in October.

g$.$ Jobs costing $$514,000$ 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 $30\%$ above cost.

Required:

Prepare journal entries to record the transactions given above.

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 $$35,000.$

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

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 $$35,000.$