Forest Components makes aircraft parts. The following transactions occurred in July. 1. Purchased $16,900 of materials on account. 2. Issued $16,820 in direct materials to the production department. 3. Issued $1,250 of supplies from the materials inventory. 4. 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 $31,800, which was paid in cash. 7. Purchased miscellaneous items for the manufacturing plant for $17.250 on account. 3. Recognized depreciation on manufacturing plant of $35,100. 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 $435,300. Estimated overhead for the year was $417,888. The following balances appeared in the inventory accounts of Forest Components for July. Materials Inventory Beginning Ending ? $12,520 Work-in-Process ? 10,610 Inventory Finished Goods $2,670 7,070 Inventory Cost of Goods ? 74,300 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. 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. Beg. bal 1. 5. Materials Inventory Beg. bal. 2. 3. Work-In-Process Inventory Transferred to Finished Goods End. bal. End. bal. Manufacturing Overhead Control Beg. bal. Applied Manufacturing Overhead Beg. bal. End. bal. 0 End. bal. Accounts Payable Cash Beg. bal. Beg. bal, End. bal. Accumulated Depreciation-Property, Plant, and Beg. bal. Equipment End. bal. Cost of Goods Sold Beg. bal. Goods completed End. bal. End. bal. Finished Goods Inventory Beg. bal. Goods completed End. bal. Transfer to Cost of Goods Sold