The Polaris Company uses ajoborder costing system. The following transactions occurred in October: a. Raw materials purchased on account, $210,000. b. Raw materials used in production, $191,000 ($152,800 direct materials and $38,200 indirect materials). c. Accrued direct labor cost of $49,000 and indirect labor cost of $21,000. d. Depreciation recorded on factory equipment, $105,000. e. Other manufacturing overhead costs accrued during October, $131,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $6 per machinehour. A total of 76,100 machinehours were used in October. 9. Jobs costing $515,000 according to theirjob cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $449,000 to complete according to theirjob cost sheets were shipped to customers during the month. These jobs were sold on account at 26% above cost. Required: 1. Preparejournal 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 $34,000. Journal entry worksheet Raw materials purchased on account, $210,000. Note: Enter debits before credits. Record entry Clear entry View general journal Journal entry worksheet Record the raw materials issued to production, $191,000 ($152,800 direct materials and $38,200 indirect materials). Note: Enter debits before credits. Record entry Clear entry View general journal Journal entry worksheet Record the entry for accrued direct labor cost incurred, $49,000; indirect labor cost incurred, $21,000. Note: Enter debits before credits. Record entry m View general journal Journal entry worksheet Depreciation recorded on factory equipment, $105,000. Note: Enter debits before credits. Record entry Clear entry View general journal Journal entry worksheet Other manufacturing overhead costs accrued during October, $131,000. Note: Enter debits before credits. Record entry Clear entry View general journal Journal entry worksheet The company applies manufacturing overhead cost to production on the basis of $6 per machine-hour. A total of 76,100 machine-hours were recorded for October. Note: Enter debits before credits. Record entry Clear entry View general journal Journal entry worksheet Jobs costing $515,000 according to their job cost sheets were completed during October and transferred to Finished Goods. Note: Enter debits before credits. Record entry Clear entry View general journal Journal entry worksheet Record the cost of goods sold. Note: Enter debits before credits. Record entry m View general journal Journal entry worksheet Record the sales on account. Note: Enter debits before credits. Record entry m View general journal -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 en balance in each account, assuming that Work in Process has a beginning balance of $34,000
