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.