Ervin Equipment, a manufacturer of exercise and workout equipment for sale to institutions, uses job costing. The following transactions occurred in January: 1. Purchased $78,000 of materials. 2. Paid $83,000 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop. 3. Issued $5,700 of supplies from the materials inventory. 4. Issued $86,000 in direct materials to the production department. 5. Incurred direct labor costs of $76,000, which were credited to Wages Payable. 6. Paid for the materials purchased in transaction (1). 7. Incurred $13,800 in indirect labor costs, which were credited to Wages Payable. 8. Applied overhead on the basis of 155 percent of direct labor costs. 9. Recognized depreciation on manufacturing property, plant, and equipment of $17,900. 10. Returned $1,180 of the materials in transaction (3) to inventory. 11. Paid the for the wages incurred in transaction (5). The following balances appeared in the accounts of Ervin Equipment for January: Required: a. Prepare journal entries to record the transactions. b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Prepare journal entries to record the transactions. Note: If no entry is required for a transactionvevent, salect "No joumal entry required" in the first account fleld. Journal entry worksheet Notei Enter debits before covits. Aoquired A