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

Purchased $16,910 of materials on account.

Issued $16,870 in direct materials to the production department.

Issued $1,330 of supplies from the materials inventory.

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

Returned $2,060 of the materials issued to production in (2) to the materials inventory.

Direct labor employees earned $32,100, which was paid in cash.

Paid $17,320 for miscellaneous items for the manufacturing plant. Accounts Payable was credited.

Recognized depreciation on manufacturing plant of $35,100.

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 $435,000. Estimated overhead for the year was $391,500.

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

	Beginning			Ending
Materials Inventory		?		$	12,540
Work-in-Process Inventory		?			10,690
Finished Goods Inventory	$	2,700			6,960
Cost of Goods Sold		?			75,400

Required:

a. Prepare journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Transactions	General Journal	Debit	Credit
1	Materials inventory	16,910
	Accounts payable		16,910
2	Work-in-processdirect materials	16,870
	Applied manufacturing overhead		16,870
3	Manufacturing overhead control	1,330
	Materials inventory		1,330
4	Accounts payable	17,000
	Cash		17,000
5	Materials inventory	2,060
	Work-in-processdirect materials		2,060
6	Work-in-processdirect labor	32,100
	Cash		32,100
7	Manufacturing overhead control	17,320
	Accounts payable		17,320
8	Manufacturing overhead control	35,100
	Accumulated depreciationplant		35,100
9	Work-in-processoverhead	28,890
	Applied manufacturing overhead		28,890

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.
								Transferred to Finished Goods
End. bal.		4,330
					End. bal.
Manufacturing Overhead Control					Applied Manufacturing Overhead
Beg. bal.					Beg. bal.
					End. bal.
End. bal.
Accounts Payable					Cash
Beg. bal.					Beg. bal.
End. bal.					End. bal.
Accumulated Depreciation Property, Plant, and Equipment					Finished Goods Inventory
Beg. bal.					Beg. bal.
					Goods completed			Transfer to Cost of Goods Sold
					End. bal.
End. bal.
Cost of Goods Sold
Beg. bal.
Goods completed
End. bal.