12.

Forest Components makes aircraft parts. The following transactions occurred in July 1 Purchased $16.840 of materials on account 2. Issued 516,770 in direct materials to the production department 3. Issued $1.240 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2.080 of the materials issued to production in (2) to the materials inventory 6. Direct labor employees earned $32,000, which was paid in cash 7. Purchased miscellaneous items for the manufacturing plant for $17.270 on account 8. Recognized depreciation on manufacturing plant of $36,300 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 $435.200. Estimated overhead for the ye was $391,600 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 Endine 2 $12.560 2 10,650 $2,750 7,100 ? 24,200 Journal entry worksheet Purchased $16,840 of materials on account. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal Required A Required B Show labor and overhead cost flows through T-accounts. Wages Payable Work-In-Process Beg, bal Beg. bal End, bal 0 End, bal 0 Cost of Services Billed Service Overhead Control Beg. bal. Beg, bal End. bal 0 End. bal. 0 Applied Service O.H. Beg bal. End, bat. 0