Forest Components makes aircraft parts. The following transactions occurred in July: 1. Purchased $16,850 of materials on account. 2. Issued $16,770 in direct materials to the production department. 3. Issued $1,330 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2,020 of the materials issued to production in (2) to the materials inventory. 6. Direct labor employees earned $32,200, which was paid in cash. 7. Paid $17,360 for miscellaneous items for the manufacturing plant. Accounts Payable was credited. 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 $435,400. Estimated overhead for the year was $391,860. The following balances appeared in the inventory accounts of Forest Components for July: Beginning Ending Materials Inventory 2 $ 12,510 Work-in-Process Inventory 2 10,640 Finished Goods Inventory $2,780 7,010 Cost of Goods Sold ? 73,600 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.) No Transactions Debit Credit 1 1 16,850 Answer is complete but not entirely correct. General Journal Materials Inventory Accounts payable No journal entry required x No journal entry required No journal entry required No journal entry required 16.850 OOOO 2 2 16,770 16,770 Work-in-process direct materials Materials inventory No journal entry required No journal entry required No journal entry required No journal entry required x x 3 Manufacturing overhead control 1,330 3 3 1,330 1,330 x Manufacturing overhead control Materials inventory No journal entry required No journal entry required No journal entry required No journal entry required x x X 4 4 16,850 16,850 x Accounts payable Cash No journal entry required No journal entry required No journal entry required No journal entry required X x X 5 5 2,020 > 2,020 Materials inventory Work-in-process-direct materials No journal entry required No journal entry required No journal entry required No journal entry required x X X 6 6 32,200 32,200 X Work-in-process-direct labor Cash No journal entry required No journal entry required No journal entry required No journal entry required x x X 7 7 17,360 17,360 x Manufacturing overhead control Accounts payable No journal entry required No journal entry required No journal entry required No journal entry required X X X 8 8 36,700 36,700 x Manufacturing overhead control Accumulated depreciation-plant No journal entry required No journal entry required No journal entry required No journal entry required x x 9 9 9 28,980 28,980 Work-in-process-overhead Applied manufacturing overhead No journal entry required No journal entry required No journal entry required No journal entry required X X x b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold. Answer is not complete. Materials Inventory Work-In-Process Inventory Beg. bal. Beg. bal. 1. 16,850 1,3303 2 16,770 2,0205 Transferred to Finished Goods 5. 2,020 16,7702 6. 32,200 9. 28,980 End. bal. 770 End. bal. 75,930 Manufacturing Overhead Control Applied Manufacturing Overhead Bog. bal. Beg. bal. 3. 28,9809. 7. 8. 1,330 17,360 36,700 End. bal. 28,980 End. bal. 55,390 5. 2,020 16,7702 6. 32,200 Finished Goods 9. 28,980 End. bal. 770 End. bal. 75,930 Manufacturing Overhead Control Applied Manufacturing Overhead Beg. bal. Beg. bal 3. 1,330 28.980 9. 7. 17,360 36,700 8. End. bal. 28,980 End. bal. 55,390 Accounts Payable Cash Beg. bal. Beg. bal. 4. 16,850 16,850 1. 17,360 7. 16,8504 32.2006 O End. bal. 17,360 End. bal. 49,050 Finished Goods Inventory Accumulated Depreciation Property, Plant, and Equipment Beg. bal. 2,780 Beg. bal. Goods completed 36,700 8. Transfer to 73,600 Cost of Goods Sold 70.820 End. bal. End. bal. 36,700 Cost of Goods Sold Beg, bal. Goods completed End, bal. 73,600 73,600 Forest Components makes aircraft parts. The following transactions occurred in July: 1. Purchased $16,850 of materials on account. 2. Issued $16,770 in direct materials to the production department. 3. Issued $1,330 of supplies from the materials inventory. 4. Paid for the materials purchased in transaction (1) using cash. 5. Returned $2,020 of the materials issued to production in (2) to the materials inventory. 6. Direct labor employees earned $32,200, which was paid in cash. 7. Paid $17,360 for miscellaneous items for the manufacturing plant. Accounts Payable was credited. 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 $435,400. Estimated overhead for the year was $391,860. The following balances appeared in the inventory accounts of Forest Components for July: Beginning Ending Materials Inventory 2 $ 12,510 Work-in-Process Inventory 2 10,640 Finished Goods Inventory $2,780 7,010 Cost of Goods Sold ? 73,600 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.) No Transactions Debit Credit 1 1 16,850 Answer is complete but not entirely correct. General Journal Materials Inventory Accounts payable No journal entry required x No journal entry required No journal entry required No journal entry required 16.850 OOOO 2 2 16,770 16,770 Work-in-process direct materials Materials inventory No journal entry required No journal entry required No journal entry required No journal entry required x x 3 Manufacturing overhead control 1,330 3 3 1,330 1,330 x Manufacturing overhead control Materials inventory No journal entry required No journal entry required No journal entry required No journal entry required x x X 4 4 16,850 16,850 x Accounts payable Cash No journal entry required No journal entry required No journal entry required No journal entry required X x X 5 5 2,020 > 2,020 Materials inventory Work-in-process-direct materials No journal entry required No journal entry required No journal entry required No journal entry required x X X 6 6 32,200 32,200 X Work-in-process-direct labor Cash No journal entry required No journal entry required No journal entry required No journal entry required x x X 7 7 17,360 17,360 x Manufacturing overhead control Accounts payable No journal entry required No journal entry required No journal entry required No journal entry required X X X 8 8 36,700 36,700 x Manufacturing overhead control Accumulated depreciation-plant No journal entry required No journal entry required No journal entry required No journal entry required x x 9 9 9 28,980 28,980 Work-in-process-overhead Applied manufacturing overhead No journal entry required No journal entry required No journal entry required No journal entry required X X x b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold. Answer is not complete. Materials Inventory Work-In-Process Inventory Beg. bal. Beg. bal. 1. 16,850 1,3303 2 16,770 2,0205 Transferred to Finished Goods 5. 2,020 16,7702 6. 32,200 9. 28,980 End. bal. 770 End. bal. 75,930 Manufacturing Overhead Control Applied Manufacturing Overhead Bog. bal. Beg. bal. 3. 28,9809. 7. 8. 1,330 17,360 36,700 End. bal. 28,980 End. bal. 55,390 5. 2,020 16,7702 6. 32,200 Finished Goods 9. 28,980 End. bal. 770 End. bal. 75,930 Manufacturing Overhead Control Applied Manufacturing Overhead Beg. bal. Beg. bal 3. 1,330 28.980 9. 7. 17,360 36,700 8. End. bal. 28,980 End. bal. 55,390 Accounts Payable Cash Beg. bal. Beg. bal. 4. 16,850 16,850 1. 17,360 7. 16,8504 32.2006 O End. bal. 17,360 End. bal. 49,050 Finished Goods Inventory Accumulated Depreciation Property, Plant, and Equipment Beg. bal. 2,780 Beg. bal. Goods completed 36,700 8. Transfer to 73,600 Cost of Goods Sold 70.820 End. bal. End. bal. 36,700 Cost of Goods Sold Beg, bal. Goods completed End, bal. 73,600 73,600