Forest Components makes aircraft parts. The following transactions occurred in July. 1. Purchased $16,870 of materials on account. 2. Issued $16,740 in direct materials to the production department. 3. Issued $1,360 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2,100 of the materials issued to production in (2) to the materials inventory. 6. Direct labor employees earned $32,500, which was paid in cash. 7. Purchased miscellaneous items for the manufacturing plant for $17,320 on account 8. Recognized depreciation on manufacturing plant of $37,000. 9. 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 $404,829. The following balances appeared in the inventory accounts of Forest Components for July Materials Inventory Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Beginning Ending ? $12,560 ? 10,510 $2,660 6,930 ? 75,500 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. Journal entry worksheet < A B C D E F G H I Purchased $16,870 of materials on account. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal Required B > Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold. Beg bal End bal Materials Inventory 0 Beg bal End bal Work-in-Process Inventory 0 Manufacturing Overhead Control Applied Manufacturing Overhead Beg bal Beg. bal End bal 0 End. bal 0 Accounts Payable Cash Beg bal Beg bal Transferred to Finished Goods Manufacturing Overhead Control Beg. bal Beg. bal. End. bal. End. bal. Applied Manufacturing Overhead 0 Accounts Payable Cash Beg. bal Beg. bal. End. bal. 0 End. bal. Accumulated Depreciation-Property, Plant, and Equipment Beg. bal. Beg bal Goods completed End bal End. bal. Beg bal Goods completed 0 Cost of Goods Sold 0 Finished Goods Inventory Transfer to Cost of Goods Sold 0