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

Purchased $76,000 of materials.

Paid $81,000 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop.

Issued $5,300 of supplies from the materials inventory.

Issued $84,000 in direct materials to the production department.

Incurred direct labor costs of $74,000, which were credited to Wages Payable.

Paid for the materials purchased in transaction (1).

Incurred $13,400 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 $17,500.

Returned $1,100 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:

	Beginning	Ending
Materials Inventory	$ 28,300	?
Work-in-Process Inventory	50,400	?
Finished Goods Inventory	179,200	$ 113,000
Cost of Goods Sold		245,600

Required:

Prepare journal entries to record the transactions.

Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.

Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.

Materials Inventory		Work-in-Process Inventory
Debit	Credit	Debit	Credit
Beginning balance	28,300selected answer correct	not attempted		Beginning balance	50,400selected answer correct	not attempted
1.selected answer correct	76,000selected answer correct	5,300selected answer correct	3.selected answer correct	4.selected answer correct	84,000selected answer correct	179,400selected answer correct	Finished Goods
not attempted	not attempted	84,000selected answer correct	4.selected answer correct	5.selected answer correct	not attempted	not attempted	not attempted
10.selected answer correct	not attempted	not attempted	not attempted	8.selected answer correct	114,700selected answer correct	not attempted	not attempted
Ending balance	15,000			not attempted	not attempted	not attempted	not attempted
	Ending balance	69,700
Manufacturing Overhead Control	Applied Manufacturing Overhead
Debit	Credit	Debit	Credit
Beginning balance	not attempted	not attempted		Beginning balance	not attempted	not attempted
2.selected answer correct	81,000selected answer correct	1,100selected answer correct	10.selected answer correct	not attempted	not attempted	114,700selected answer correct	8.selected answer correct
3.selected answer correct	5,300selected answer correct	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted
7.selected answer correct	13,400selected answer correct	not attempted	not attempted	Ending balance		$114,700
9.selected answer correct	17,500selected answer correct	not attempted	not attempted
Ending balance	116,100
Accounts Payable	Cash
Debit	Credit	Debit	Credit
Beginning balance	not attempted	not attempted		Beginning balance	not attempted	not attempted
6.selected answer correct	76,000selected answer correct	76,000selected answer correct	1.selected answer correct	not attempted	not attempted	81,000selected answer correct	2.selected answer correct
not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	76,000selected answer correct	6.selected answer correct
not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	74,000selected answer correct	11.selected answer correct
Ending balance	0			Ending balance		231,000
Wages Payable	Accumulated DepreciationProperty, Plant, and Equipment
Debit	Credit	Debit	Credit
Beginning balance	not attempted	not attempted		Beginning balance	not attempted	not attempted
11.selected answer correct	74,000selected answer correct	70,000selected answer incorrect	5.selected answer correct	not attempted	not attempted	17,500selected answer correct	9.selected answer correct
not attempted	not attempted	13,400selected answer correct	7.selected answer correct	not attempted	not attempted	not attempted	not attempted
Ending balance		9,400		Ending balance		17,500
Finished Goods Inventory	Cost of Goods Sold
Debit	Credit	Debit	Credit
Beginning balance	179,200selected answer correct	not attempted		Beginning balance	0selected answer correct	not attempted
Goods completed	179,400selected answer correct	245,600selected answer correct	Transfer to Cost of Goods Sold	Finished Goods Inventory	245,600selected answer correct	not attempted
Ending balance	113,000			Ending balance	245,600