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, $189,000 ($151,200 direct materials and $37,800 indirect materials).
3. Accrued direct labor cost of $50,000 and indirect labor cost of $21,000.
4. 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 production using a predetermined rate of $5 per machine-hour. A total of 76,300 machine-hours were used in October.
7. Jobs costing $514,000 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 26% 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.)

No	Transaction	General Journal	Debit	Credit
1	a.	Raw materials	211,000
		Accounts payable		211,000
2	b.	Work in process	151,200
		Manufacturing overhead	37,800
		Raw materials		189,000
3	c.	Work in process	50,000
		Manufacturing overhead	21,000
		Salaries and wages payable		71,000
4	d.	Manufacturing overhead	106,000
		Accumulated depreciation		106,000
5	e.	Manufacturing overhead	130,000
		Accounts payable		130,000
6	f.	Work in process	381,500
		Manufacturing overhead		381,500
7	g.	Finished goods	514,000
		Work in process		514,000
8	h(1).	Cost of goods sold	451,000
		Finished goods		451,000
9	h(2).	Accounts receivable	568,260
		Sales		568,260

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 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.

Manufacturing Overhead					Work in Process
Beg. bal.					Beg. bal.
End. bal.					End. bal.