Exercise 3-5 (Static) Journal Entries and T-accounts [LO3-1, LOB-2] The Polaris Company uses a joborder 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 machinehour. A total of 30,000 machinehours were used in October. g. Jobs costing $520,000 were completed and transferred to Finished Goods. h. Jobs costing $480,000 were shipped to customers. Thesejobs were sold on account at 25% above cost. Required: 1. Preparejournal entries to record the transactions given above. 2. Prepare Taccounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming Work in Process has a beginning balance of $42,000. Complete this question by entering your answers in the tabs below. Required 1 Required 2 7 Prepare journal entries to record the transactions given above. Note: If no entry is required for a transaction/event, select "No journal entry required" in the rst account eld. View transaction list Journal entry worksheet 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 $42,000. Beginning balance Ending balance Ending balance