Forest Components makes aircraft parts. The following transactions occurred in July.

Purchased $16,820 of materials on account.

Issued $16,830 in direct materials to the production department.

Issued $1,370 of supplies from the materials inventory.

Paid for the materials purchased in transaction (1) using cash.

Returned $2,100 of the materials issued to production in (2) to the materials inventory.

Direct labor employees earned $32,200, which was paid in cash.

Purchased miscellaneous items for the manufacturing plant for $17,370 on account.

Recognized depreciation on manufacturing plant of $36,200.

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 $434,400. Estimated overhead for the year was $421,368.

The following balances appeared in the inventory accounts of Forest Components for July.

	Beginning			Ending
Materials Inventory		?		$	12,440
Work-in-Process Inventory		?			10,540
Finished Goods Inventory	$	2,660			7,010
Cost of Goods Sold		?			75,200

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.