Forest Components makes aircraft parts. The following transactions occurred in July, 1. Purchased $16,860 of materials on account 2. Issued $16,860 in direct materials to the production department 3. Issued $1,310 of supplies from the materials inventory 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2,190 of the materials issued to production in (2) to the materials inventory. 6. Direct labor employees earned $31,800, which was paid in cash. 7. Purchased miscellaneous items for the manufacturing plant for $17,250 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 $434,400. Estimated overhead for the year was $386,616. The following balances appeared in the inventory accounts of Forest Components for July Materials Inventory Work in Process Inventory Tinished Goods Inventory Cost of Goods Sold Beginning Ending $12,520 ? 10,570 $2,600 7,080 ? 74,400 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 A Required B 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 Beg bal 16,860 16,8602 6 2.190 1,310 3. Transferred to Finished Goods 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. Bog, bal 16,860 16,8602 1. 5 2,190 1,310 3 Transferred to Finished Goods End, bal 880 End, bal 0 Manufacturing Overhead Control Applied Manufacturing Overhead Beg bal Beg bal End, bal 0 End, bal Accounts Payable Cash Beg bal Beg, bal 0 End, bal End, bal Finished Goods Inventory Accumulated Depreciation-Property, Plant, and Equipmeet Bogbal Beg bal Goods completed Transfer to Cost of Goods Sold End. bal. 0 End, bol O Cost of Goods Sold Beg bal Goods completed End, bal View transaction list View journal entry worksheet X No Transaction General Journal Debit Credit A 1 Materials inventory Accounts payable 16,860 16,860 B 2 Work-in-process-direct materials Materials inventory 16,860 16,860 3 Manufacturing overhead control Materials inventory 1,310 1,310 D 4 Accounts payable Cash 16,860 16,860 E 5 Materials inventory Work-in-process-direct materials 2,190 2,190 F 6 Work-in-process-direct materials Cash 31,800 31,800 G 7 Manufacturing overhead control Accounts payable 17.250 17,250 H 8 Accounts payable Cash 37,000 37,000 1 9 Manufacturing overhead control Accumulated depreciation plant 37,000 37,000 Required A Required B
