The Polaris Company uses a job-order costing system. The following transactions occurred in October:

1. Raw materials purchased on account, $210,000.
2. Raw materials used in production, $190,000 ($152,000 direct materials and $38,000 indirect materials).
3. Accrued direct labor cost of $48,000 and indirect labor cost of $20,000.
4. Depreciation recorded on factory equipment, $105,000.
5. Other manufacturing overhead costs accrued during October, $129,000.
6. The company applies manufacturing overhead cost to production using a predetermined rate of $9 per machine-hour. A total of 76,000 machine-hours were used in October.
7. Jobs costing $512,000 according to their job cost sheets were completed during October and transferred to Finished Goods.
8. Jobs that had cost $452,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 24% 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 $34,000.

1 2 3 4 5 6 7 8 9 a. b. C. d. e. f. g. h(1). h(2). Raw materials Accounts payable Work in process Manufacturing overhead Raw materials Work in process Manufacturing overhead Salaries and wages payable Manufacturing overhead Accumulated depreciation Manufacturing overhead Accounts payable Manufacturing overhead Finished goods Work in process Work in process Cost of goods sold Finished goods Accounts receivable Sales 33 33 33 210,000 152,000 38,000 49,000 X 21,000 X 105,000 130,000 X 456,600 X 513,000 X 449,000 X 583,700 X 210,000 190,000 70,000 X 105,000 130,000 X 456,600 x 513,000 449,000 X 583,700 X X Answer is complete but not entirely correct. Work in Process 36,000 152,000 49,000 456,600 180,600 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Manufacturing Overhead Debit Credit Beginning balance b. 38,000 456,000 f. C. 21,000 d. 105,000 e. 130,000 Ending balance 162,000 Debit Beginning balance b. C. f. Ending balance