Exercise 7-22 (Algo) Assigning Costs to Jobs (LO 7-1, 2) The following transactions occurred in April at Steve's Cabinets, a custom cabinet firm. 1. Purchased $22.500 of materials on account. 2. Issued $1,450 of supplies from the materials inventory. 3. Purchased $12,500 of materials on account. 4. Paid for the materials purchased in transaction (1) using cash. 5. Issued $14,900 in direct materials to the production department. 6. Incurred direct labor costs of $26,500, which were credited to Wages Payable. 7. Paid $22,500 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant. 8. Applied overhead on the basis of 130 percent of $26,500 direct labor costs. 9. Recognized depreciation on manufacturing property, plant, and equipment of $11,300. The following balances appeared in the accounts of Steve's Cabinets for April. Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Beginning Ending $31,590 7,900 ? 34,500 $29,290 54,630 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