EXERCISE $3-14$ Journal Entries and T$-$accounts $[$LO$4,$ L$05,$ LOT$]$

The Polaris Company uses a job$-$order costing system. The following data relate to October, the first month of the company's fiscal year.

a$.$ Raw materials purchased on account, $$210,000.$

b$.$ Raw materials issued to production, $$190,000($ $$178,000$ direct materials and $$12,000$ indirect materials$).$

c$.$ Direct labor cost incurred, $$90,000$; indirect labor cost incurred, $$110,000.$

d$.$ Depreciation recorded on factory equipment, $$40,000.$

e$.$ Other manufacturing overhead costs incurred during October, $$70,000($credit Accounts Payable$).$

f$.$ The company applies manufacturing overhead cost to production on the basis of $$8$ per machine$-$hour. A total of $30,000$ machine$-$hours were recorded for October:

g$.$ Production orders costing $$520,000$ according to their job cost sheets were completed during October and transferred to Finished Goods.

h$.$ Production orders that had cost $$480,000$ to complete according to their job cost sheets were shipped to customers during the month. These goods were sold on account at $25\%$ above cost. Required:

Prepare journal entries to record the information given above.

Prepare T$-$accounts for Manufacturing Overhead and Work in Process. Post the relevant information above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $$42,000.$