The following transactions occurred at Arrow Space, Inc., a small defense contractor that uses.job costing;

a. Purchased $71,600 in raw material on account.

Issued $2,000 in supplies (indirect material) from raw-material inventory to the production department, Paid for the raw material purchased in (a).

Issued $34,000 in raw material to the production department.

oB oIn curred wage costs of $56,000, which were debited to Payroll, a temporary account. Of this amount, $18,000 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $38,000 was paid in cash to the employees. See transactions

(f) and (g) for additional information about the Payroll account.

f. Recognized $28,000 in fringe benefit costs, incurred as a result of the wages paid in (e). This

$28,000 was debited to Payroll and credited to Fringe Benefits Payable.

g. Analyzed the Payroll account and determined that 40 percent represented production labor; 40 percent manufacturing support (overhead) labor; and 20 percent selling and administrative costs.

h. Paid for utilities, power, equipment maintenance, and other overhead items for the manufacturing plant totaling $43,200.

i. Recognized depreciation of $21,000 on manufacturing property, plant, and equipment.

j. Applied manufacturing overhead on the basis of 400 percent of production labor costs.

Required Prepare T-accounts to show the flow of costs during the period. The following balances appeared in Arrow Space’s accounts before closing temporary accounts:

Beginning Ending Raw-materiall INVENtOrY’.....ccc ete $74,100 ?

Work-in-proCess INVENtOTY...... eee 16,500 ?

Finished-goods inventory «........:ccceeeee 83,000 $ 66,400

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