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The Polaris Company uses a job-order costing system. The following data relate to October, the first month of the companys fiscal year. a. Raw materials

The Polaris Company uses a job-order costing system. The following data relate to October, the first month of the companys fiscal year.

a. Raw materials purchased on account, $210,000.
b. Raw materials issued to production, $189,000 ($151,200 direct materials and $37,800 indirect materials).
c. Direct labor cost incurred, $50,000; indirect labor cost incurred, $21,000.
d. Depreciation recorded on factory equipment, $104,000.
e. Other manufacturing overhead costs incurred during October, $131,000 (credit Accounts Payable).
f.

The company applies manufacturing overhead cost to production on the basis of $7 per machine-hour. A total of 76,200 machine-hours were recorded for October.

g.

Production orders costing $515,000 according to their job cost sheets were completed during october and transferred to Finished Goods.

h.

Production orders that had cost $450,000 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold on account at 22% above cost.

Required:
1.

Prepare journal entries to record the information given above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2.

Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant information above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $34,000.

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