The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials purchased...

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Accounting

The Polaris Company uses a job-order costing system. Thefollowing transactions occurred in October:
Raw materials purchased on account, $210,000.
Raw materials used in production, $188,000 ($150,400 directmaterials and $37,600 indirect materials).
Accrued direct labor cost of $48,000 and indirect labor cost of$21,000.
Depreciation recorded on factory equipment, $104,000.
Other manufacturing overhead costs accrued during October,$130,000.
The company applies manufacturing overhead cost to productionusing a predetermined rate of $7 per machine-hour. A total of76,400 machine-hours were used in October.
Jobs costing $511,000 according to their job cost sheets werecompleted during October and transferred to Finished Goods.
Jobs that had cost $450,000 to complete according to their jobcost sheets were shipped to customers during the month. These jobswere sold on account at 40% 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 $35,000.

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Journal entries
No	General journal			Debit	Credit

a.	Raw materials			210,000
	accounts payable				210,000

b.	Work in process inventory			150,400
	manufacturing overhead			37,600
	Raw materials				188,000

c.	Work in process inventory			48,000
	manufacturing overhead			21,000
	Wages payable				69,000

d.	Manufacturing overhead			104,000
	Accumulated depreciation				104,000

e.	Manufacturing overhead			130,000
	Accounts payable				130,000

f.	Work in process inventory			534800
	manufacturing overhead				534,800
	(76,400*7)

g.	Finished goods			511,000
	Work in process inventory				511,000

h.	Cost of goods sold			450,000
	finished goods				450,000

	Accounts receivable			630000
	sales	(450000*140%)			630,000



	Manufacturing overhead
b.	37,600	f.	534,800
c.	21,000
d.	104,000
e.	130,000
		End bal	242,200


	Work In process inventory
Beg bal	35,000	g.	511,000
b.	150,400
c.	48,000
f.	534,800

end bal	257,200

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The Polaris Company uses a job-order costing system. Thefollowing transactions occurred in October:Raw materials purchased on account, $210,000.Raw materials used in production, $188,000 ($150,400 directmaterials and $37,600 indirect materials).Accrued direct labor cost of $48,000 and indirect labor cost of$21,000.Depreciation recorded on factory equipment, $104,000.Other manufacturing overhead costs accrued during October,$130,000.The company applies manufacturing overhead cost to productionusing a predetermined rate of $7 per machine-hour. A total of76,400 machine-hours were used in October.Jobs costing $511,000 according to their job cost sheets werecompleted during October and transferred to Finished Goods.Jobs that had cost $450,000 to complete according to their jobcost sheets were shipped to customers during the month. These jobswere sold on account at 40% 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 $35,000.