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 ($152,000 direct materials and $38,000 indirect materials). c. Accrued direct labor cost of $50,000 and indirect labor cost of $20,000. d. Depreciation recorded on factory equipment, $105,000. e. Other manufacturing overhead costs accrued during October, $130,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $9 per machine-hour. A total of 76,100 machine-hours were used in October. g. Jobs costing $515,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $448,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 20% 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 $36,000. Journal entry worksheet < 1 2 3 456789 Raw materials purchased on account, $210,000. Note: Enter debits before credits. Transaction a. General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 9 Record the raw materials issued to production, $190,000 ($152,000 direct materials and $38,000 indirect materials). Note: Enter debits before credits. Transaction b. General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 6 7 8 9 Record the entry for accrued direct labor cost incurred, $50,000; indirect labor cost incurred, $20,000. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Required 2 Journal entry worksheet 1 2 3 4 5 6 7 8 9 > Depreciation recorded on factory equipment, $105,000. Note: Enter debits before credits. Transaction d. General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 9 Other manufacturing overhead costs accrued during October, $130,000. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Required 1 Required 2 > View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 6 8 The company applies manufacturing overhead cost to production on the basis of $9 per machine-hour. A total of 76,100 machine-hours were recorded for October. Note: Enter debits before credits. Transaction f. General Journal Debit Credit Record entry Clear entry View general journal > View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 89 > Jobs costing $515,000 according to their job cost sheets were completed during October and transferred to Finished Goods. Note: Enter debits before credits. Transaction 9. General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 Record the cost of goods sold. 6 Note: Enter debits before credits. Transaction General Journal Debit Credit h(1). > Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 9 Record the sales on account. Note: Enter debits before credits. Transaction h(2). General Journal Debit Credit Record entry Clear entry View general journal