Item 1 12.5 points Item 1 Exercise 7-22 (Algo) Assigning Costs to Jobs (LO 7-1, 2) The following transactions occurred in April at Steves Cabinets, a custom cabinet firm. Purchased $21,500 of materials on account. Issued $1,350 of supplies from the materials inventory. Purchased $12,300 of materials on account. Paid for the materials purchased in transaction (1) using cash. Issued $14,700 in direct materials to the production department. Incurred direct labor costs of $25,500, which were credited to Wages Payable. Paid $22,300 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant. Applied overhead on the basis of 120 percent of $25,500 direct labor costs. Recognized depreciation on manufacturing property, plant, and equipment of $11,100. The following balances appeared in the accounts of Steves Cabinets for April. Beginning Ending Materials Inventory $ 31,290 ? Work-in-Process Inventory 7,700 ? Finished Goods Inventory 34,300 $ 29,190 Cost of Goods Sold 54,330 Required: a. Prepare journal entries to record the transactions. b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold