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

1. Raw materials purchased on account, $209,000.
2. Raw materials used in production, $191,000 ($152,800 direct materials and $38,200 indirect materials).
3. Accrued direct labor cost of $49,000 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 $6 per machine-hour. A total of 76,300 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 20% 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 $35,000.

Journal entry worksheet 1 2 3 4 5 6 7 8 9 Raw materials purchased on account, $209,000. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 9 > Record the raw materials issued to production, $191,000 ($152,800 direct materials and $38,200 indirect materials). Note: Enter debits before credits. General Journal Debit Credit Transaction b. Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 9 > Record the entry for accrued direct labor cost incurred, $49,000; indirect labor cost incurred, $20,000. Note: Enter debits before credits. Transaction General Journal Debit Credit c. Record entry Clear entry View general journal Journal entry worksheet Depreciation recorded on factory equipment, $105,000. Note: Enter debits before credits. Transaction General Journal Debit Credit d. Record entry Clear entry View general journal Journal entry worksheet Other manufacturing overhead costs accrued during October, $130,000. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 9 > The company applies manufacturing overhead cost to production on the basis of $6 per machine-hour. A total of 76,300 machine-hours were recorded for October Note: Enter debits before credits. Transaction General Journal Debit Credit f. Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 9 Jobs costing $512,000 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 entry Clear entry View general journal Journal entry worksheet Record the cost of goods sold. Note: Enter debits before credits. General Journal Debit Credit Transaction h(1). Record entry Clear entry View general journal Journal entry worksheet