Exercise 7-25 (Algo) Assigning Costs to Jobs (LO 7-1) Ervin Equipment, a manufacturer of exercise and workout equipment for sale to institutions, uses job costing. The following transactions occurred in January: 1. Purchased $76,500 of materials. 2. Paid $81,500 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop. 3. Issued $5,400 of supplies from the materials inventory. 4. Issued $84,500 in direct materials to the production department. 5. Incurred direct labor costs of $74,500, which were credited to Wages Payable. 6. Paid for the materials purchased in transaction (1). 7. Incurred $13,500 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 $17,600. 10. Returned $1,120 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. Prepare journal entries to record the transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account fi Journal entry worksheet Complete this question by entering your answers in the tabs below. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold. Required A