Ervin Equipment, a manufacturer of exercise and workout equipment for sale to institutions, uses job costing. The following

transactions occurred in January:

Purchased $$80,000$ of materials.

Paid $$85,000$ cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop.

Issued $$6,100$ of supplies from the materials inventory.

Issued $$88,000$ in direct materials to the production department.

$5.$ Incurred direct labor costs of $$78,000,$ which were credited to Wages Payable.

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

Incurred $$14,200$ in indirect labor costs, which were credited to Wages Payable.

Applied overhead on the basis of $155$ percent of direct labor costs.

Recognized depreciation on manufacturing property, plant, and equipment of $$18,300.$

Returned $$1,260$ of the materials in transaction $(3)$ to inventory.

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.