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

1. Purchased $16,870 of materials on account.

2. Issued $16,890 in direct materials to the production department.

3. Issued $1,260 of supplies from the materials inventory.

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

5. Returned $2,070 of the materials issued to production in (2) to the materials inventory.

6. Direct labor employees earned $31,700, which was paid in cash.

7. Purchased miscellaneous items for the manufacturing plant for $17,360 on account.

8. Recognized depreciation on manufacturing plant of $36,500.

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 $435,200. Estimated overhead for the year was $413,440.

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

	Beginning			Ending
Materials Inventory		?		$	12,570
Work-in-Process Inventory		?			10,580
Finished Goods Inventory	$	2,620			7,020
Cost of Goods Sold		?			75,300

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.

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.	11,780				Beg. bal.
1.	16,870	16,890	2.		2.	16,890	2,070	5.
5.	2,070	1,260	3.		6.	31,700		Transferred to Finished Goods
					9.	30,120
End. bal.	12,570
					End. bal.	76,640
Manufacturing Overhead Control					Applied Manufacturing Overhead
Beg. bal.					Beg. bal.
					End. bal.	0
End. bal.	0
Accounts Payable					Cash
Beg. bal.					Beg. bal.
End. bal.	0				End. bal.	0
Accumulated DepreciationProperty, Plant, and Equipment					Finished Goods Inventory
Beg. bal.					Beg. bal.
					Goods completed			Transfer to Cost of Goods Sold
					End. bal.	0
End. bal.	0
Cost of Goods Sold
Beg. bal.
Goods completed
End. bal.	0