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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, $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 $50,000 and indirect labor cost of $22,000. d. Depreciation recorded on factory equipment, $105,000. e. Other manufacturing overhead costs accrued during October, $129,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $9 per machine-hour. A total of 76.300 machine hours were used in October. 9. Jobs costing $511,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $449,000 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 $35,000. Complete this question by entering your answers in the tabs below. Prepare journal entries to record the transactions given above. (If no entry is required for a transaction/event, select "No journa required" in the first account fleld.) Journal entry worksheet Record the raw materials issued to production, $191,000 ( $152,800 direct materials and $38,200 indirect materials). Note: Enter debits before credits. required in the first account field.) Journal entry worksheet (6) 7 ( 8 9 Record the entry for accrued direct labor cost incurred, $50,000; indirect labor cost incurred, $22,000. Note: Enter debits before credits. The company applies manufacturing overhead cost to production on the basis of $9 per machine-hour. A total of 76,300 machine-hours were recorded for October. Note: Enter debits before credits. 1 2 (3) 4 5 6 7 89 Record the cost of goods sold. Note: Enter debits before credits. \begin{tabular}{|c|l|c|c|} \hline Transaction & \multicolumn{1}{|c|c|}{ General Journal } & Debit & Credit \\ \hlineh(1) & Cost of goods sold & 511,000 & \\ \hline & Finished goods & & 511,000 \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Required 2> 1 (2) 3 4 (5) 6 7 8 9 Record the sales on account. Note: Enter debits before credits. Required 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 that Work in Process has a beginning balance of $35,000