.3) 7-46. Tracing Costs in a Job Company m4e The following transactions occurred in January at Dungan Cabinetry, a furniture maker that uses job costing: 1. Purchased $53,700 in materials on account. 2. Issued $1,500 in supplies from the materials inventory to the production department. 3. Paid for the materials purchased in (1). 4. Issued $25,500 in direct materials to the production department. 5. Incurred wage costs of $42,000, which were debited to Payroll, a temporary account. Of this amount, $13,500 was withheld for payroll taxes and credited to Payroll Taxes Pay- able. The remaining $28,500 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll. 6. Recognized $21,000 in fringe benefit costs, incurred as a result of the wages paid in (5). This $21,000 was debited to Payroll and credited to Fringe Benefits Payable. 7. Analyzed the Payroll account and determined that 60 percent represented direct labor; 30 percent, indirect manufacturing labor; and 10 percent, administrative and marketing costs. 8. Paid for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant totaling $32,400. 9. Applied overhead on the basis of 175 percent of direct labor costs. 10. Recognized depreciation of $17,250 on manufacturing property, plant, and equipment. Required a. b. Prepare journal entries to record these transactions. The balances that appeared in the accounts of Dungan Cabinetry are shown on the following page.