Exercise 7-24 (Algo) Assigning Costs to Jobs (LO 7-1, 2) Forest Components makes aircraft parts. The following transactions occurred in July. 1. Purchased $16,910 of materials on account. 2. Issued $16,710 in direct materials to the production department. 3. Issued $1,350 of supplies from the materials Inventory. 1. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2,150 of the materials issued to production in (2) to the materials Inventory. 5. Direct labor employees earned $32,500, which was paid in cash. 7. Purchased miscellaneous Items for the manufacturing plant for $17,260 on account. 3. Recognized depreciation on manufacturing plant of $36,100. 3. Applied manufacturing overhead for the month. Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate. At the beginning of the year, management estimated that direct labor costs for the year would be $435,500. Estimated overhead for the year was $391,950. The following balances appeared in the inventory accounts of Forest Components for July. Materials Inventory Beginning Ending ? $12,590 Work-in-Process ? 10,590 Inventory Finished Goods $2,650 7,000 Inventory Cost of Goods ? 73,600 Sold Required: a. Prepare journal entries to record these transactions. b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold. Required: a. Prepare journal entries to record these transactions. b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold. Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required A B 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 Beg. bal. 1. Beg. bal. 16,910 16,710 2. 2. 16,710 2,150 5. 5. 2,150 1,350 3. 6. 32,500 Transferred to Finished Goods 9. 29,250 End. bal. 1,000 End. bal. 76,310 Manufacturing Overhead Control Beg. bal. Beg. bal. 3. 1,350 Applied Manufacturing Overhead 29,250 9. 7. 17,260 8. 36,100 End. bal. 29,250 End. bal. 54,710 Beg. bal. 4. End. bal. Accounts Payable 16,910 16,910 1. Beg. bal 17,260 7. 3 17,260 End. bal. Accumulated Depreciation-Property, Plant, and Equipment Beg. bal. End. bal. Cash 16,910 4. 32,500 6. 49,410 Finished Goods Inventory Beg. bal. 2,650 36,100 8. Goods completed End. bal. 2,650 36,100 Cost of Goods Sold Beg. bal. Goods 73,600 completed End. bal. 73,600 Transfer to Cost of Goods Sold