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Forest Components makes aircraft parts. The following transactions occurred in July, 1. Purchased $16,810 of materials on account. 2. Issued $16,770 in direct materials to

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Forest Components makes aircraft parts. The following transactions occurred in July, 1. Purchased $16,810 of materials on account. 2. Issued $16,770 in direct materials to the production department 3. Issued $1,380 of supplies from the materials inventory 4. Pald for the materials purchased in transaction (1) using cash. 5. Returned $2,160 of the materials issued to production in (2) to the materials inventory 6. Direct labor employees earned $31700, which was paid in cash 7. Purchased miscellaneous items for the manufacturing plant for $17,300 on account 8. Recognized depreciation on manufacturing plant of $36,700. 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 $434200. Estimated overhead for the year was $386,438 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 Sola Beginning Ending $12,500 10, 620 $2,700 6,910 2 74,700 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 15 12 5 Transferred to Finished Goods End, bal 0 9 End bal Manufacturing Overhead control Applied Manufacturion Overhead Manufacturing Overhead Control Applied Manufacturing Overhead Beg bal Beg bal 3 17 18 End, bal 0 End bal Accounts Payable Cash Bogbal Beg bal 14 End bal End bal Accumulated Depreciation Property Plant and Equipment Beg bal Fine Wor Beg bal Goods completed Transfer to cost of Goods Sold End bal End, bal Beg bal Goods completed End, bal Cost of Goods Sold 74.400 74,400 74,400 74,400 Transaction General Journal Credit No A Debit 16,900 1 Materials Inventory Accounts payable 16,850 % B 2 16,860 Work-in-process direct materials Materials inventory 16,860 3 Manufacturing overhead control Materials inventory D 4 Accounts payable Cash >> E 5 Materials inventory Work-in-process direct materials F 6 Work-in-process-direct labor Cash Manufacturing overhead control Accounts payable >> H 8 Manufacturing overhead control Accumulated depreciation-plant 35,600 35,600 1 9 Work-in-process-overhead Applied manufacturing overhead >> 34

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