$7-19.$ Assigning Costs to Jobs

The following transactions occurred in June at Fast Wheels, Inc., a custom bicycle manufacturer:

$(107-1,2)$

Purchased $$20,000$ of materials.

Issued $$1,000$ of supplies from the materials inventory.

Purchased $$25,000$ of materials.

Paid for the materials purchased in transaction $(1).$

Part III Cost Management Systems

Issued $$30,000$ in direct materials to the production department.

Incurred direct labor costs of $$25,000,$ which were credited to Wages Payable.

Paid $$21,500$ cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop.

Applied overhead on the basis of $125$ percent of direct labor costs.

Recognized depreci$$tion on manufacturing property, plant, and equipment of $$5,000.$

The following balances appeared in the accounts of Fast Wheels for June:

$\backslash$table$[[,$Beginning,Ending$],[$Materials Inventory.,$$9,000,?],[$Work$-$in$-$Process Inventory. $.........,16,500,?],[$Finished Goods Inventory $..........,65,000,$$$36,500$