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

Raw materials purchased on account, $210,000.

Raw materials used in production, $192,000 ($153,600 direct materials and $38,400 indirect materials).

Accrued direct labor cost of $50,000 and indirect labor cost of $21,000.

Depreciation recorded on factory equipment, $105,000.

Other manufacturing overhead costs accrued during October, $130,000.

The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 76,400 machine-hours were used in October.

Jobs costing $515,000 according to their job cost sheets were completed during October and transferred to Finished Goods.

Jobs that had cost $450,000 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 $34,000.

No	Transaction	General Journal	Debit	Credit
1	a.	Raw materials	210,000
		Accounts payable		210,000
2	b.	Work in process	153,600
		Manufacturing overhead	38,400
		Raw materials		192,000
3	c.	Work in process	50,000
		Manufacturing overhead	21,000
		Salaries and wages payable		71,000
4	d.	Manufacturing overhead	105,000
		Accumulated depreciation		105,000
5	e.	Manufacturing overhead	130,000
		Accounts payable		130,000
6	f.	Work in process	608,800
		Manufacturing overhead		608,800
7	g.	Finished goods	515,000
		Work in process		515,000
8	h(1).	Cost of goods sold	450,000
		Finished goods		450,000
9	h(2).	Accounts receivable	594,000
		Sales		594,000

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.

Manufacturing Overhead					Work in Process
Debit		Credit			Debit		Credit
Beginning balance					Beginning balance
Ending balance					Ending balance