A-1 Polaris Company uses a job-order costing system. The following transactions occurred in October:Raw materials purchased on account, $210,000.Raw materials used in production, $190,000 ($152,000 direct materials and $38,000 indirect materials).Accrued direct labor cost of $48,000 and indirect labor cost of $20,000.Depreciation recorded on factory equipment, $106,000.Other manufacturing overhead costs accrued during October, $131,000.The company applies manufacturing overhead cost to production using a predetermined rate of $10 per machine-hour. A total of76,400 machine-hours were used in October.Jobs costing $511,000 according to their job cost sheets were completed during October and transferred to Finished Goods.Jobs that had cost $450,000 to complete according to their job cost sheets were shipped to customers during the month. Thesejobs were sold on account at 22% 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 $35,000.

Name: A-1 Polaris Company uses a job-order costing system. The following tra
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Description: A-1 Polaris Company uses a job-order costing system. The following transactions occurred in October:Raw materials purchased on account, $210,000.Raw materials used in production, $190,000 ($152,000 direct materials and $38,000 indirect materials).Acc

Journal Entry is the primary step in recording the transactions in the books of accounts.The…

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Accounting

e Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials purchased on account, $210,000. Raw materials used in production, $190,000 ($152,000 direct materials and $38,000 indirect materials). Accrued direct labor cost of $48,000 and indirect labor cost of $20,000. Depreciation recorded on factory equipment, $106,000. Other manufacturing overhead costs accrued during October, $131,000. The company applies manufacturing overhead cost to production using a predetermined rate of $10 per machine-hour. A total of 76,400 machine-hours were used in October. 1. Jobs costing $511,000 according to their job cost sheets were completed during October and transferred to Finished Goods. . Jobs that had cost $450,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 22% 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 $35,000.