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

Purchased $16,940 of materials on account.

Issued $16,850 in direct materials to the production department.

Issued $1,300 of supplies from the materials inventory.

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

Returned $2,190 of the materials issued to production in (2) to the materials inventory.

Direct labor employees earned $31,600, which was paid in cash.

Purchased miscellaneous items for the manufacturing plant for $17,310 on account.

Recognized depreciation on manufacturing plant of $36,500.

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 $435,300. Estimated overhead for the year was $417,888.

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

	Beginning			Ending
Materials Inventory		?		$	12,530
Work-in-Process Inventory		?			10,660
Finished Goods Inventory	$	2,790			6,930
Cost of Goods Sold		?			74,000

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.