The Polaris Company uses a job-order costing system. The following data relate to October, the first month of the company's fiscal year. a. Raw materials purchased on account, $210,000. b. Raw materials issued to production, $190,000 ($178,000 direct materials and $12,000 indirect materials). c. Direct labor cost incurred, $90,000; indirect labor cost incurred, $110,000 d. Depreciation recorded on factory equipment, $40,000. e. Other manufacturing overhead costs incurred during October, $70,000 (credit Accounts Payable) f. The company applies manufacturing overhead cost to production on the basis of $8 per machine-hour. A total of 30,000 machine-hours were recorded for October. g. Production orders costing $520,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Production orders that had cost $480,000 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold on account at 25% 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.) General Journal No Transaction Debit Credit Raw materials inventory 1 210,000 Accounts payable 210.000 Raw materials inventory 210.000 x 2 h Accounts payable 210,000 Work in process 178,000 x 3 C. Manufacturing overhead 12,000 Raw materials inventory 190,000 d. Manufacturing overhead 4 40,000 Accumulated depreciation 40,000 Manufacturing overhead 5 70,000 e Accounts payable 70,000 Work in process 6 f. 240.000 Manufacturing overhead 240,000 Finished goods 520,000 g. Work in process 520.000 Cost of goods sold 8 h(1). 480,000 Finished goods 480,000 h(2). 60.000x Accounts receivable 60.000 x Sales Bed tet indcetea re reagpna was EREted In e sel ar a farmu a-baand co uleCian a ircarrect: na coinca drdusted. co b. Prepare a schedule of cost of goods sold. Alexsandar Company Schedule of Cost of Goods Sold For the Year Ended December 31 37,000 Finished goods inventory, beginning Add: Cost of goods available for sale 688,000 725,000 Cost of goods available for sale Less: Finished goods inventory, ending Unadjusted cost of goods sold 725,000 Add: Underapplied overhead 23,000 748,000 Adjusted cost of goods sold Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. c. Prepare an income statement for the year. Alexsandar Company Income Statement For the Year Ended December 31 $ 1,093,000 Sales 686,000 Cost of goods sold Gross margin 407,000 Selling and administrative expenses: Administrative expenses 151,000 217,000 Selling expenses 368,000 39,000 Net operating income