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Ervin Equipment, a manufacturer of exercise and workout equipment for sale to institutions, uses job costing. The following transactions occurred in January: 1. Purchased $84,000

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Ervin Equipment, a manufacturer of exercise and workout equipment for sale to institutions, uses job costing. The following transactions occurred in January: 1. Purchased $84,000 of materials. 2 Pald $89,000 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop. 3. Issued $6,900 of supplies from the materials inventory. 4. Issued $92,000 in direct materlals to the production department. 5 . Incurred direct labor costs of $82,000, which were credited to Wages Payable. 6. Paid for the materials purchased in transaction (1). 7. Incurred $15,000 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 depreclation on manufacturing property, plant, and equipment of $19,100. 10. Returned $1,420 of the materials in transaction (3) to inventory. 11. Pald 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 Materlais inventory through Cost of Goods Sold. The following balances appeared in the accounts of Ervin Equipment for January. Requlred: 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 transaction/event, select "No joumal entry required" in the first account field. Journal entrv worksheet Prepare journal entries to record the transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the f F Paid for the materials purchased in transaction (1). G Incurred $15,000 in indirect labor costs, which were credited to Wages Payable. H Applied overhead on the basis of 155 percent of direct labor costs. I Recognized depreciation on manufacturing property, plant, and equipment of $19,100. 10 Required A Recuired B 6 painta 04.4213 Prepare T-acciounts to show the flow of costs during the period from Materials Imsentery through Cost ef Goeds Seld. \begin{tabular}{|c|c|} \hline \multicolumn{2}{|c|}{ Applied tonufacturing Oxsihead } \\ \hline & Credit \\ \hline Eepinning balance & \\ \hline & \\ \hline & \\ \hline Ending balance & \\ \hline \end{tabular} Reruired A

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