Exercise 3-5 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 $38,400 indirect materials). c Accrued direct labor cost of $49,000 and indirect labor cost of $22.000 d. Depreciation recorded on factory equipment, $106.000 e. Other manufacturing overhead costs accrued during October, $131,000 t The company applies manufacturing overhead cost to production using a predetermined rate of $6 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 costooo 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 from above to each ac Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $34,000 ount