EXERCISE $3-5$ Journal Entries and T$-$accounts

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

a Raw materials purchased on account, $$209,000$

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, $$104,000.$

e Other manufacturing overhead costs accrued during October, $$131,000.$

f The company applies manufacturing overhead cost to production using a predetermined rate of $$5$ per machine$-$hour. A total of $76,000$ machine$-$hours were used in October.

g Jobs costing $$510,000$ 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

Partial Chart of accounts

Assets

Accounts Receivable

Raw materials

Work in Process

Manufacturing Overhead

Finished goods

Accumulated Depreciation

Liabilities

Accounts Payable

Salaries and Wages payable

were sold on account at $26\%$ above cost.

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

Revenue and Expense

$2$ Post the relevant transactions from above to the T$-$accounts for Manufacturing Overhead and Work in Process,.

Sales

Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $$42,000.$

Problem Information

Partial Chart of accounts

General Journal

General Journal

$(2)$