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, $191,000 ($152,800 direct materials and $38,200 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, $130,000.
6. The company applies manufacturing overhead cost to production using a predetermined rate of $5 per machine-hour. A total of 76,100 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 $451,000 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.

No	Transaction	General Journal	Debit	Credit
1	a.	Raw materials	210,000
		Accounts payable		210,000
2	b.	Work in process	152,800
		Manufacturing overhead	38,200
		Raw materials		191,000
3	c.	Work in process	48,000
		Manufacturing overhead	20,000
		Salaries and wages payable		68,000
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	380,500
		Manufacturing overhead		380,500
7	g.	Finished goods	512,000
		Work in process		512,000
8	h(1).	Cost of goods sold	451,000
		Finished goods		451,000
9	h(2).	Accounts receivable	613,360

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.

Manufacturing Overhead					Work in Process
Beg. bal.					Beg. bal.	34,000
b.	38,200	380,500	f.		b.	152,800	512,000	g.
c.	20,000				c.	48,000
d.	105,000				f.	380,500
e.	130,000
End. bal.		87,300			End. bal.	103,300