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

1. You purchased $16,990 of materials on account.

2. Issued $16,840 in direct materials to the production department.

3. Issued $1,280 of supplies from material inventory.

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

5. You returned $2,120 of the materials shipped to production in (2) to materials inventory.

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

7. You paid $17,260 for miscellaneous items for the manufacturing plant. Accounts Payable was credited.

8. Depreciation recognized at the manufacturing plant of $36,500.

9. Factory overhead applied for the month.

Forest uses normal costing. Applies overhead based on direct labor costs using a predetermined annual rate. At the beginning of the year, management estimated direct labor costs for the year to be $435,200. Estimated overhead expenses for the year were $391,680.

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

	Beginning			Finishing
Materials inventory		?		ps	12,490
inventory in progress		?			10,560
Finished Goods Inventory	ps	2,700			6,930
cost of goods sold		?			75,100

a. Prepare journal entries to record these transactions (1-9)

b. Prepare T-accounts to show the flow of costs over the period from materials inventory to cost of goods sold.