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

1. Raw materials purchased on account, $211,000.
2. Raw materials used in production, $191,000 ($152,800 direct materials and $38,200 indirect materials).
3. Accrued direct labor cost of $50,000 and indirect labor cost of $22,000.
4. Depreciation recorded on factory equipment, $105,000.
5. Other manufacturing overhead costs accrued during October, $130,000.
6. The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 76,000 machine-hours were used in October.
7. Jobs costing $511,000 according to their job cost sheets were completed during October and transferred to Finished Goods.
8. 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 36% 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.

• Raw materials purchased on account, $211,000.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
a.

• Record the raw materials issued to production, $191,000 ($152,800 direct materials and $38,200 indirect materials).

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
b.

• Record the entry for accrued direct labor cost incurred, $50,000; indirect labor cost incurred, $22,000.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
c.

• Depreciation recorded on factory equipment, $105,000.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
d.

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

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
e.

• The company applies manufacturing overhead cost to production on the basis of $8 per machine-hour. A total of 76,000 machine-hours were recorded for October.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
f.

• 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	General Journal	Debit	Credit
g.

• Record the cost of goods sold.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
h(1).

• Record the sales on account.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
h(2).