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, $192,000 ($153,600 direct materials and $38,400 indirect materials). c. Accrued direct labor cost of $49,000 and indirect labor cost of $21,000. d. Depreciation recorded on factory equipment, $106,000. e. Other manufacturing overhead costs accrued during October, $130,000. 1. The company applies manufacturing overhead cost to production using a predetermined rate of $10 per machine-hour. A total of 76,200 machine-hours were used in October. g. Jobs costing $511,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $451,000 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 account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $36,000. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record the transactions given above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Raw materials purchased on account, $209,000. 2 Record the raw materials issued to production, $192,000 ($153,600 direct materials and $38,400 indirect materials). 3 Record the entry for accrued direct labor cost incurred, $49,000; indirect labor cost incurred, $21,000. Depreciation recorded on factory equipment, $106,000. 5 Other manufacturing overhead costs accrued during October, $130,000. 6 The company applies manufacturing overhead cost to View transaction list 5 Other manufacturing overhead costs accrued during October, $130,000. 6 The company applies manufacturing overhead cost to production on the basis of $10 per machine-hour. A total of 76,200 machine-hours were recorded for October. 7 Jobs costing $511,000 according to their job cost sheets were completed during October and transferred to Finished Goods. 8 Record the cost of goods sold. 9 Record the sales on account. Cred 1 2 3 4 5 6 7 8 Raw materials purchased on account, $209,000. Note: Enter debits before credits. Transaction a 6 General Journal Debit Credit Record the raw materials issued to production, $192,000 ($153,600 direct materials and $38,400 indirect materials). Note: Enter debits before credits. Transaction b. General Journal Debit Credit Record the entry for accrued direct labor cost incurred, $49,000; indirect labor cost incurred, $21,000. Note: Enter debits before credits. Transaction C. General Journal Debit Credit Depreciation recorded on factory equipment, $106,000. Note: Enter debits before credits. Transaction d. General Journal Debit Credit Other manufacturing overhead costs accrued during October, $130,000. Note: Enter debits before credits. Transaction e. General Journal Debit Credit The company applies manufacturing overhead cost to production on the basis of $10 per machine-hour. A total of 76,200 machine-hours were recorded for October. Note: Enter debits before credits. Transaction f. General Journal Debit Credit Jobs costing $511,000 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 1 2 3 4 5 Record the cost of goods sold. Note: Enter debits before credits. Transaction h(1). 6 7 8 9 General Journal Debit Credit Record the sales on account. Note: Enter debits before credits. Transaction General Journal Debit Credit h(2).