Forest Components makes aircraft parts

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Forest Components makes aircraft parts. The following transactions occurred in July. 1. Purchased $16,980 of materials on account. 2. Issued $16,810 in direct materials to the production department. 3. Issued $1,250 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2,180 of the materials issued to production in (2) to the materials inventory. 6. Direct labor employees earned $32,500, which was paid in cash. 7. Purchased miscellaneous items for the manufacturing plant for $17,390 on account. 8. Recognized depreciation on manufacturing plant of $36,600. 9. Applied manufacturing overhead for the month. Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate. At the beginning of the year, management estimated that direct labor costs for the year would be $434,900. Estimated overhead for the year was $395.759. The following balances appeared in the inventory accounts of Forest Components for July. Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Beginning Ending ? $12,530 ? 10,600 $2,760 6,910 74,100 Required: a. Prepare journal entries to record these transactions. b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold. Complete this question by entering your answers in the tabs below. No Transaction General Journal Debit Credit A 1 16,980 Materials inventory Accounts payable 16,980 B 2. Work-in-process—direct materials 16,810 Materials inventory 16,810 ? 3 1.250 Manufacturing overhead control Materials inventory 1,250 D 4 Accounts payable 16,980 Cash 16,980 E 5 Materials inventory 2,180 Work-in-process-direct materials 2,180 F 6 32,500 Work-in-process—direct labor Cash 32,500 G 7 17,390 Manufacturing overhead control Accounts payable 17,390 j H 8 36,600 Manufacturing overhead control Accumulated depreciation-plant 36,600 1 9 29,575 Work-in-process-overhead Applied manufacturing overhead 29,575 Required A Required B Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold. Materials Inventory Work-In-Process Inventory Beg. bal. 1. Beg. bal. 12. 16,980 1,250 3. 16,810 2,180 5. 2,180 16,810 2. 6. 32,500 Transferred to Finished Goods 9. 29,575 End. bal. 1,100 End. bal. 76,705 Manufacturing Overhead Control Applied Manufacturing Overhead 0 Beg. bal. 0 Beg. bal. 3. 29,575 9. 7. 1,250 17,390 36,600 8. End. bal. 29,575 End. bal. 55,240 Accounts Payable Cash Beg. bal. 0 Beg. bal. 0 4. 16,980 16,980 1. 17,390 7. 16,980 4. 32,500 6. End. bal. 17,390 End. bal. 49,480 Accumulated Depreciation—Property, Plant, and Equipment Beg. bal. 0 Finished Goods Inventory 2,760 Beg. bal. 36,600 8. Goods completed 74,100 Transfer to Cost of Goods Sold End. bal. 71,340 End. bal. 36,600 Cost of Goods Sold Beg. bal. 0 Goods completed 74,100 74,100 End. bal. < Required A Required B