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, $210,000. b Raw materials used in production, $190,000 ($178,000 direct materials and $12,000 indirect materials). C Accrued direct labor cost of $90,000 and indirect labor cost of $110,000. d Depreciation recorded on factory equipment $40,000 e Other manufacturing overhead costs accrued during October, $70,000. @4 f The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 30,000 machine-hours were used in October. g Jobs costing $520,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h Jobs that had a cost of $480,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 25% above cost. 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 $42,000.

GENERAL JOURNAL Manufacturing Overhead Work in Proces 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, $210,000. b Raw materials used in production, $190,000 ( $178,000 direct materials and $12,000 indirect materials). c Accrued direct labor cost of $90,000 and indirect labor cost of $110,000. d Depreciation recorded on factory equipment $40,000 e Other manufacturing overhead costs accrued during October, $70,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 30,000 machine-hours were used in October. E Jobs costing $520,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h Jobs that had a cost of $480,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 25% above cost. 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 $42,000. 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, $210,000. b Raw materials used in production, $190,000 ( $178,000 direct materials and $12,000 indirect materials). c Accrued direct labor cost of $90,000 and indirect labor cost of $110,000. d Depreciation recorded on factory equipment $40,000 e Other manufacturing overhead costs accrued during October, $70,000. I The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 30,000 machine-hours were used in October. g Jobs costing $520,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h Jobs that had a cost of $480,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 25% above cost. 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 $42,000