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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, $189,000 ($151,200 direct materials and $37,800 indirect materials).
3. Accrued direct labor cost of $49,000 and indirect labor cost of $22,000.
4. Depreciation recorded on factory equipment, $106,000.
5. Other manufacturing overhead costs accrued during October, $131,000.
6. The company applies manufacturing overhead cost to production using a predetermined rate of $8 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 24% 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 $37,000.

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 209,000 Accounts payable 209,000 2 b. Work in process Manufacturing overhead Raw materials 151,200 37,800 189,000 OOO oool 3 C. Work in process 48,000 X 20,000 x Manufacturing overhead Salaries and wages payable 68,000 X 4 d. 105,000 X Manufacturing overhead Accumulated depreciation 105,000 X 5 e. 131,000 Manufacturing overhead Accounts payable 131,000 6 f. Work in process 381,000 X Manufacturing overhead 381,000 X 7 g. 511,000 X Finished goods Work in process olol 511,000 X 8 h(1). Cost of goods sold 5,447,000 X Finished goods 5,447,000 x 9 h(2) 554,280 X Accounts receivable Sales 554,280 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 $37,000. Manufacturing Overhead Beg. bal. Beg. bal. b. 381,000 X f. b. g. Work in Process 536,000 X 151,200 511,000 48,000 381,000 X C. C. >>>> 37,800 20,000 > 105,000 X 131,000 d. f. e. End. bal. 87,200 End. bal. 605,200

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