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Ched 18 Exercise 3-5 (Static) Journal Entries and T-accounts [LO3-1, LO3-2) 2.2 Soints The Polaris Company uses a job-order costing system. The following transactions occurred in October eBook Hint Print a. Raw materials purchased on account, $210,000. b. Raw materials used in production. $190,000 (5178,000 direct materials and $12,000 indirect materials). c. Accrued direct labor cost of $90,000 and indirect labor cost of $110,000 d. Depreciation recorded on factory equipment, $40,000 e. Other manufacturing overhead costs accrued during October, $70,000 f. The company applles manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 30,000 machine-hours were used in October g. Jobs costing $520,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $480,000 to complete according to their job cost sheets were shipped to customers during the month. These Jobs were sold on account at 25% above cost. References 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 $42,000