5.

The following transactions occurred in January at Apex Manufacturing, a custom parts supplier. Apex uses job costing.

1. Purchased $54,000 in materials on account.
2. Issued $1,800 in supplies from the materials inventory to the production department.
3. Paid for the materials purchased in transaction (1).
4. Issued $25,800 in direct materials to the production department.
5. Incurred wage costs of $45,000, which were debited to Payroll, a temporary account. Of this amount, $13,800 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $31,200 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll.
6. Recognized $24,000 in fringe benefit costs, incurred as a result of the wages paid in (5). This $24,000 was debited to Payroll and credited to Fringe Benefits Payable.
7. Analyzed the Payroll account and determined that 70 percent represented direct labor; 20 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 $32,700.
9. Applied overhead on the basis of 160 percent of direct labor costs.
10. Recognized depreciation of $17,550 on manufacturing property, plant, and equipment.

Required:

a. Prepare journal entries to record these transactions.

b. The balances that appeared in the accounts of Apex Manufacturing are shown as follows.

	Beginning			Ending
Materials Inventory	$	56,025
Work-in-Process Inventory		12,825
Finished Goods Inventory		62,550		$	50,400
Cost of Goods Sold					100,275

Prepare T-accounts to show the flow of costs during the period.