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: a Raw materials purchased on account, $210,000. b. Raw materials used in production, $192,000 ($153,600 direct materials and $39,400 indirect materials c Accrued direct labor cost of $49,000 and indirect labor cost of $21,000. d. Depreciation recorded on factory equipment, $105,000. e Other manufacturing overhead costs accrued during October $129,000. The company applies manufacturing overhead cost to production using a predetermined rate of $6 per machine hout A total of 76,500 machine hours were used in October. Jobs costing $511000 according to their job cost sheets were completed during October and transferred to Finished Goods. h Jobs that had cost $450,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 28% 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 from above to each account Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $37,000