Ervin Equipment, a manufacturer of exercise and workout equipment for sale to institutions, uses job costing. The following transactions occurred in January: 1. Purchased $82,000 of materials. 2. Paid $87,000 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop 3. Issued $6,500 of supplies from the materials inventory. 4. Issued $90,000 in direct materials to the production department. 5. Incurred direct labor costs of $80,000, which were credited to Wages Payable. 6. Paid for the materials purchased in transaction (1). 7. Incurred $14,600 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 $18,700. 10. Returned $1,340 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. B Note: Enter debits before credits. Paid $87,000 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop. Note: Enter debits before credits. Issued $6,500 of supplies from the materials inventory. Note: Enter debits before credits. Issued $90,000 in direct materials to the production department. Note: Enter debits before credits. Incurred direct labor costs of $80,000, which were credited to Wages Payable. Note: Enter debits before credits. Paid for the materials purchased in transaction (1). Note: Enter debits before credits. Incurred $14,600 in indirect labor costs, which were credited to Wages Payable. Note: Enter debits before credits. Applied overhead on the basis of 155 percent of direct labor costs. Note: Enter debits before credits. Recognized depreciation on manufacturing property, plant, and equipment $18,700. Note: Enter debits before credits. Returned $1,340 of the materials in transaction (3) to inventory. Note: Enter debits before credits. Journal entry worksheet ADEFG Paid the for the wages incurred in transaction (5). Note: Enter debits before credits