b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold. (Please complete part B)

value: 20.00 points Exercise 7-23 Assigning Costs to Jobs (LO 7-1, 2) Forest Components makes aircraft parts. The following transactions occurred in July 1. Purchased $119,000 of materials on account. 2. Issued $117,600 in direct materials to the production department. 3. Issued $8,400 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $15,400 of the materials issued to production in (2) to the materials inventory 6. Direct labor employees earned $217,000, which was paid in cash. 7. Paid $120,400 for miscellaneous items for the manufacturing plant. Accounts Payable was credited 8. Recognized depreciation on manufacturing plant of $245,000 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 $3,000,000. Estimated overhead for the year was $2,790,000. The following balances appeared in the inventory accounts of Forest Components for July: Ending S 88,200 Finished Goods Inventory Cost of Goods Sold 73,500 49,700 521,500 $18,200 Materials Inventory Work-In-Process Inventory Beg. bal 79,800 119,000 15,400 Beg. bal 105,490 117,600 217,000 201,810 117,600 15,400 Transferred to 8,400 553,000 hed Goods End. bal 88,200 End. bal 73,500 Manufacturing Overhead Control Applied Manufacturing Overhead Beg. bal Beg. bal 201,810 8,400 120,400 245,000 End. bal 201,810 End. bal 373,800 Accounts Payable Cash Beg. bal Beg. bal 217,000 End. bal 0 End. bal 217,000 Accumulated Depreciation-Property, Plant, and Equipment Beg. bal Finished Goods Inventory Beg. bal Goods completed End. bal 18,200 553,000 571,200 Transfer to Cost of Goods Sold End. bal 0 Cost of Goods Sold Beg. bal Goods completed End. bal 0