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

1. Raw materials purchased on account, $210,000.
2. Raw materials used in production, $190,000 ($152,000direct materials and $38,000 indirect materials).
3. Accrued direct labor cost of $49,000 and indirectlabor cost of $20,000.
4. Depreciation recorded on factory equipment,$106,000.
5. Other manufacturing overhead costs accrued duringOctober, $129,000.
6. The company applies manufacturing overhead cost toproduction using a predetermined rate of $7 per machine-hour. Atotal of 76,300 machine-hours were used in October.
7. Jobs costing $512,000 according to their job costsheets were completed during October and transferred to FinishedGoods.
8. Jobs that had cost $451,000 to complete according totheir job cost sheets were shipped to customers during the month.These jobs were sold on account at 34% above cost.

Required:

1. Prepare journal entries to record the transactions givenabove.

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

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

Manufacturing overhead

b.
c.
d.
e.
end. bal.

Work in process

beg. bal.	34,000
b.
c.
f.
End. Bal.